ISLAMABAD: In a move that keeps fuel prices steady, the federal government has revised the tax structure on petroleum products effective July 1. While the climate support levy (CSL) on petrol and high-speed diesel has been doubled, the petroleum levy has been reduced by an identical amount, resulting in no net change in retail prices for consumers.
Notifications issued by the Petroleum Division confirm that the CSL has been increased by Rs 2.5 per liter on both fuels, raising it from Rs 2.5 to Rs 5 per liter. Simultaneously, the petroleum levy has been cut by Rs 2.5 per liter, effectively offsetting the increase. As a result, the current prices of petrol and diesel remain unchanged, providing a buffer to the public against inflation while advancing environmental policy goals.
The decision reflects the government’s effort to balance fiscal requirements with climate accountability, ensuring that the burden on consumers is not increased.
