ISLAMABAD: The federal government has revised the tax structure on petroleum products and increased the climate support levy on petrol and high-speed diesel while reducing the petroleum levy by an equal amount to ensure that there is no change in fuel prices for consumers.
According to separate notifications issued by the Petroleum Division on Wednesday, the climate support levy on both petrol and diesel has been increased by Rs 2.50 per litre, taking the levy from Rs 2.50 to Rs 5 per litre.
Along with this, the government has reduced the petroleum levy on both petroleum products by Rs 2.50 per liter. Since the increase in one levy has been offset by a similar reduction in the other, there will be no change in the retail prices of petrol and diesel.
Officials said that the adjustments have been made within the existing framework of pricing and it will not impose any additional financial burden on motorists or transport operators.
The revised levy structure is part of the government’s broader fiscal and environmental policy, which seeks to gradually align fuel taxes with climate-related fiscal objectives while maintaining price stability in the domestic petroleum market.
Under the latest notification, consumers will continue to purchase petrol and diesel at current prices despite the change in the structure of taxes included in the final retail rate.
The Petroleum Division did not announce any changes to the fuel supply arrangements or the current petroleum pricing mechanism, indicating that only the distribution of levies has been changed.
Economic analysts believe that the government’s decision reflects an attempt to balance environmental commitments with public concerns over inflation, as fuel price stability is a key factor in controlling transportation and commodity prices.
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