The federal government has doubled the climate support levy on petrol and high-speed diesel from Rs2.50 to Rs5 per litre while reducing the petroleum levy by the same amount, ensuring there is no change in retail fuel prices.
Notifications issued by the Petroleum Division late Wednesday confirmed that the revised levy structure came into effect on July 2.
While climate support levy has also been increased to Rs5 per litre on high octane blending component (HOBC), officials said the move implements one of Pakistan’s commitments under its programme with the International Monetary Fund (IMF) and is expected to generate around Rs50 billion during the 2026-27 fiscal year.
The additional revenue will support climate-related initiatives and strengthen public finances, they added.
It may be noted that the change follows the government’s decision to keep petrol and diesel prices unchanged at Rs299.50 and Rs311.47 per litre, respectively, in last week’s fuel prices review.
Since July 1, the government has been recalibrating fuel levies while maintaining stable retail prices. Before the latest adjustment, the petroleum levy stood at Rs66.64 per litre on petrol and Rs79.54 per litre on high-speed diesel.
Last month, the government had announced significant reductions in fuel prices after a fall in international crude oil prices, cutting petrol by Rs74 per litre and diesel by Rs67 per litre. Kerosene prices were also reduced by Rs48.29 per litre to Rs233.90.
