The federal government has increased the Climate Support Levy on petrol and high-speed diesel from Rs2.50 to Rs5 per litre. At the same time, it has reduced the Petroleum Levy by Rs2.50 per litre to prevent any immediate rise in fuel prices for consumers.
This change took effect on July 2, as per a notification issued by the Ministry of Energy’s Petroleum Division. The government emphasized that this adjustment aims to keep petroleum product prices stable, avoiding additional financial pressure on consumers despite the higher climate levy.
The Climate Support Levy was introduced to fund environmental protection efforts, climate change mitigation, and other eco-friendly projects. With the recent revision, the levy has doubled to Rs5 per litre.
To balance the increased climate levy, the Petroleum Levy has been lowered by the same amount, ensuring the total tax burden on petrol and diesel remains unchanged. This means retail prices for these fuels will stay at their current levels for the time being.
Officials noted that petroleum prices are regularly reviewed, taking into account global crude oil price fluctuations, exchange rates, and applicable taxes and levies. This latest adjustment reflects the government’s effort to manage fuel costs while supporting environmental initiatives.
