With the start of the new financial year 2025-26, the government has introduced new taxes on petrol and other fuels. These taxes are part of the International Monetary Fund (IMF)’s conditions related to climate change support.
A new tax called the “Climate Support Levy” of Rs 2.50 per litre has been added to petrol, diesel, and kerosene. To make room for this, the government has slightly reduced the old Petroleum Development Levy (PDL).
For petrol, the PDL is now Rs 75.52 per litre, down from Rs 78.
For high-speed diesel, the PDL is now Rs74.51, also reduced from Rs78.
For kerosene, the new climate levy of Rs 2.50 is added on top of the old PDL of Rs 18.95.
For light diesel, the PDL remains at Rs 15.37 per litre.
Government Adds New Climate Tax on Petrol and Diesel
This new tax is part of Pakistan’s agreement with the IMF to support global efforts against climate change.
Alongside these changes, the government has also increased fuel prices:
Petrol price is now Rs266.89 per litre, an increase of Rs14.80.
High-speed diesel is now Rs 272.98 per litre, up by Rs 10.39.
These new prices and taxes apply from July 1, 2025.
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