Govt revises fuel levy structure, prices unchanged

July 03, 2026 (MLN): The federal government has revised the levy structure on petroleum products at the beginning of the new fiscal year by increasing the Climate Support Levy (CSL) and making a corresponding reduction in the Petroleum Levy (PL), ensuring that retail fuel prices remain unchanged.

Under a notification issued by the Ministry of Energy (Petroleum Division) on July 1, the Climate Support Levy on motor gasoline (petrol) and high-speed diesel (HSD) has been raised by Rs2.50 per litre, bringing the levy to Rs5.00 per litre.

The same levy also applies to HOBC (97 RON) and furnace oil, while kerosene oil and light diesel oil remain exempt from the Climate Support Levy.

To offset the increase, the Petroleum Levy on petrol sold through retail outlets has been reduced from Rs66.64 per litre to Rs64.14 per litre, while the levy on HSD has been lowered from Rs79.54 per litre to Rs77.04 per litre.

Since the reduction in the Petroleum Levy matches the increase in the Climate Support Levy, consumers will see no change in retail fuel prices.

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