Levy Increased on Petrol and Diesel
The federal government has increased the climate support levy on petrol and high-speed diesel.
The levy has been raised by Rs2.50 per litre. It now stands at Rs5 per litre on both fuels.
The change was announced through a notification issued by the Petroleum Division on Wednesday. The revised levy will take effect from July 2, 2026.
The move is part of Pakistan’s commitments under the International Monetary Fund programme. It is also linked to the government’s revenue strategy for the new fiscal year.
Officials said the climate support levy is expected to help the government collect Rs50 billion during fiscal year 2026-27.
HOBC Also Brought Under New Levy
The government has also imposed a Rs5 per litre climate support levy on High Octane Blending Component.
This means HOBC users will also contribute to the climate support revenue target.
The levy is designed to support climate-related initiatives. It is also expected to strengthen public finances at a time when Pakistan is working to meet fiscal reform targets.
Pakistan remains highly vulnerable to climate change. Floods, heatwaves, water stress, and extreme weather events have increased pressure on public resources.
The government says additional climate financing is needed to support long-term resilience and adaptation measures.
Fuel Prices Remain Unchanged After Adjustment
Despite the increase in the climate support levy, the overall impact on petrol and diesel prices will remain unchanged.
The federal government has reduced the petroleum levy on petrol and diesel by Rs2.50 per litre at the same time.
This adjustment offsets the increase in the climate support levy.
As a result, consumers will not face an immediate price rise due to this specific change.
The decision shows the government’s attempt to meet IMF-linked commitments without directly increasing fuel prices for the public.
The revised levy is part of broader fiscal and structural reforms agreed with the IMF. These reforms focus on revenue generation, spending control, and stronger financial management.
The additional revenue from the climate support levy will be used for climate-related goals and public finance stability.
