The federal government on Wednesday increased the climate support levy on petrol and diesel by Rs2.50 per litre, implementing one of its commitments under the International Monetary Fund (IMF) programme.
According to a notification issued by the Petroleum Division, the climate support levy on both petrol and high-speed diesel has been increased from Rs2.50 per litre to Rs5 per litre with immediate effect.
The government has also imposed a Rs5 per litre climate support levy on High Octane Blending Component (HOBC).
Officials said the revised levy will come into effect from July 2, 2026, and is aimed at helping the government achieve its revenue target of Rs50 billion under the climate support levy during the fiscal year 2026-27.
To offset the increase, the federal government has simultaneously reduced the petroleum levy on petrol and diesel by Rs2.50 per litre, keeping the overall impact on fuel prices unchanged.
The increase in the climate support levy is part of the government’s fiscal and structural reform commitments agreed with the IMF, with the additional revenue intended to support climate-related initiatives and strengthen public finances.
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