Petrol Price in Pakistan to Increase from July 1 Amid New Climate Support Levy

The price of petrol might see a hike from July  1 as the Government of Pakistan will enforce a new environmental tax titled the Climate Support Levy. This tax replaces the previous Carbon Levy and forms part of the federal budget for the fiscal year 2025–26

Under the new levy, a charge of Rs2.50 per litre will apply to petrol, high-speed diesel, and furnace oil. This rate is scheduled to increase to Rs5 per litre in the 2026–27 fiscal year.

Government officials state that the main aim of the levy is to raise funds specifically for tackling climate change, with all revenue directed towards green energy development and environmental sustainability projects nationwide.

Experts regard this initiative as a step towards aligning Pakistan with international green finance practices, reflecting the country’s commitment to climate action among developing nations.

Environmental economists suggest that if the levy is managed with transparency, it could strengthen Pakistan’s reputation globally and potentially attract more climate-related international funding.

Read More: Petrol Price Increased by Rs 4.80 Per Liter in Pakistan