The Petroleum Division has revised the levy structure on petroleum products by reducing the Petroleum Levy (PL) on petrol and high-speed diesel (HSD) while simultaneously increasing the Climate Support Levy (CSL), ensuring that the overall tax burden on consumers remains unchanged.
According to a notification issued on Wednesday, the division has withdrawn and replaced its earlier notification dated June 26, 2026, introducing a revised levy framework under the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961. The new rates will come into force from July 2, 2026, and will remain applicable until further orders.
Under the updated notification, the Petroleum Levy on ex-depot petrol has been reduced by Rs2.50 per litre, bringing it down from Rs66.64 to Rs64.14 per litre. Similarly, the levy on high-speed diesel has also been lowered by Rs2.50 per litre, decreasing from Rs79.54 to Rs77.04 per litre.
At the same time, the government has increased the Climate Support Levy on both petrol and high-speed diesel from Rs2.50 per litre to Rs5.00 per litre. The increase exactly matches the reduction in the Petroleum Levy, meaning there is no net change in the total levy imposed on these fuels.
The adjustment reflects the government’s effort to rebalance the composition of fuel-related taxes without altering the overall fiscal impact on petroleum products. Officials said the revised structure has been introduced in line with the existing legal framework governing petroleum and climate-related levies.
The Climate Support Levy is intended to help generate financial resources for initiatives aimed at addressing climate-related challenges, while the Petroleum Levy remains a significant source of government revenue.
