Govt implements new petroleum, climate support levies

March 07, 2026 (MLN): The Government of Pakistan, through the Ministry of Energy’s Petroleum Division and the Oil and Gas Regulatory Authority (OGRA), has implemented a new pricing and levy structure effective from March 07, 2026.

This latest update supersedes previous notifications from late February and introduces specific rates for the Petroleum Levy and a new Climate Support Levy.

The adjustment aims to balance fiscal requirements with the costs of imported and refined petroleum products, with the Director General (Oil) determining rates across various fuel categories.

In a strategic move for institutional logistics, OGRA has revised the prices for Kerosene Oil supplied to Pakistan Railways and Defence Authorities to a maximum sale price of Rs309.74 per litre.

This specific rate includes the ex-refinery price of Rs289.38 and the Petroleum Levy of Rs20.36 but excludes handling charges, cost of additives, and the Inland Freight Equalization Margin (IFEM).

For the general public, the retail price of Kerosene at the depot level has been fixed at Rs318.81 per litre, incorporating a distributor margin of Rs1.58 and an IFEM of Rs7.49.

This follows a significant move where the government increased the prices of petrol and High Speed Diesel (HSD) by Rs. 55 per litre, taking them to Rs. 321.17 and Rs. 335.86 respectively, yesterday.

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