Shafaqna Pakistan: The government has increased the Climate Support Levy on petrol and diesel by Rs2.50 per litre, raising it from Rs2.50 to Rs5 per litre with effect from July 2.
According to sources, the increase will not affect the retail prices of petrol and diesel, which remain unchanged. They said the levy was raised in line with a condition set by the International Monetary Fund (IMF).
Sources added that the higher climate levy has been offset through a corresponding reduction in the petroleum levy, ensuring there is no impact on fuel prices.
Late on Wednesday, the Petroleum Division issued notifications confirming the revised levies. Under the new rates, the Climate Support Levy on both petrol and diesel has been increased to Rs5 per litre from the previous Rs2.50 per litre.
The same increase has also been applied to the high-octane blending component (HOBC).
To offset the increase in the Climate Support Levy, the government has reduced the Petroleum Levy on petrol and high-speed diesel by Rs2.50 per litre.
The Petroleum Levy on HOBC has also been cut by Rs2.50 per litre.
As a result of the simultaneous increase in the Climate Support Levy and reduction in the Petroleum Levy, the current retail prices of petrol and diesel remain unchanged despite the revision in the tax structure.
The Petroleum Division issued the notifications as part of the government’s revised fuel levy framework, which took effect from July 1.
The latest changes come after the federal government last week kept the prices of petrol and diesel unchanged at Rs299.50 and Rs311.47 per litre, respectively, following its fuel price review.
Source: Dunya News
