Petrol price to rise as govt imposes climate levy from July 1, 2025
Federal govt introduces climate support levy to fund nation’s green revolution: Rs2.50 climate levy per litre on petrol and diesel: Climate tax will be doubled in 2026
Starting July 1, 2025, the Government of Pakistan will implement a Climate Support Levy, a new environmental tax introduced under the 2025-26 federal budget, replacing the former Carbon Levy, 24NewsHD TV channel reported on Sunday.
According to the report, under the new policy, a levy of Rs2.50 per litre will be imposed on petrol, high-speed diesel, and furnace oil.
This amount is set to double to Rs5 per litre for all these fuels in the 2026-27 fiscal year.
Officials say the primary objective of this levy is to generate funds to combat climate change, with all proceeds earmarked for green energy projects and environmental sustainability initiatives across the country.
Experts view this move as part of Pakistan’s broader efforts to align with global green finance standards, positioning itself among developing nations taking serious climate action.
Environmental economists argue that if implemented transparently, the levy can boost Pakistan’s credibility on the international stage and open doors for further climate-related foreign funding.
Reporter: Ashraf Khan