Pakistan raises climate levy to PKR 5 per liter on petrol and diesel

Pakistan's federal government has doubled the Climate Support Levy on petrol and high-speed diesel (HSD) to PKR 5 per litre while reducing the petroleum levy on both fuels by PKR 2.50 per litre, according to a notification issued by the Ministry of Energy's Petroleum Division.

The notification, issued on Wednesday, said the Climate Support Levy on motor gasoline (petrol) and high-speed diesel has been increased from PKR 2.50 per litre to PKR 5 per litre.

To offset the increase, the government reduced the petroleum levy on both fuels by PKR 2.50 per litre.

Revised levy rates

Under the revised rates, the petroleum levy on petrol sold through retail outlets has been reduced to PKR 64.14 per litre from PKR 66.64 per litre, while the levy on high-speed diesel has been lowered to PKR 77.04 per litre from PKR 79.54 per litre.

For direct sales, the petroleum levy has been set at PKR 72.78 per litre for petrol and PKR 85.68 per litre for high-speed diesel.

The notification also maintains a Climate Support Levy of PKR 5 per litre on HOBC (97 RON) and MS (95 RON) fuels.

No Climate Support Levy has been imposed on Superior Kerosene Oil (SKO) or Light Diesel Oil (LDO). Furnace Oil will continue to attract a Climate Support Levy of PKR 5 per litre, equivalent to PKR 5,330 per metric tonne.

Effective July 2

The revised levy rates will take effect on July 2, 2026, and remain in force until further notice, the Petroleum Division said.

The notification was issued under Section 3 of the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961, superseding the previous notification dated June 26, 2026.