Pakistan increases the Climate Support Levy to Rs5 per litre while reducing the Petroleum Levy to keep petrol and diesel prices unchanged for consumers.
Pakistan’s federal government has revised its fuel taxation policy by doubling 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 to prevent any immediate increase in retail fuel prices.
The revised levies took effect on July 2, according to a notification issued by the Ministry of Energy’s Petroleum Division. The government said the move was designed to maintain existing petrol and diesel prices, shielding consumers from additional financial pressure.
Officials stated that the enhanced Climate Support Levy will generate funds for environmental protection, climate change mitigation, and other sustainable development initiatives. Despite the increase, motorists will not pay more at the pump because the Petroleum Levy has been reduced by Rs2.50 per litre, keeping the overall tax burden unchanged.
Government sources said the adjustment reflects a balancing approach that supports climate-related financing without affecting consumers in the short term. Pakistan continues to review petroleum prices regularly, taking into account international crude oil prices, exchange rate movements, and applicable taxes and levies.
About The Author
