Rs2.5 per litre carbon levy imposed on POL products

In order to generate revenues to promote climate-resilient projects, new “Carbon Levy” has been introduced on POL products

By News Desk
June 11, 2025
Motorcyclists filling their fuel tanks at a petrol pump in Hyderabad, on March 1, 2022. — APP
Motorcyclists filling their fuel tanks at a petrol pump in Hyderabad, on March 1, 2022. — APP

ISLAMABAD: The government has slapped a carbon levy of Rs2.5 per litre in the budget under the IMF conditions.

In order to generate revenues to promote climate-resilient projects, a new “Carbon Levy” has been introduced on POL products. Starting in fiscal year 2025-26, this levy will be Rs2.5 per litre, increasing to Rs5 per litre in fiscal year 2026-27. The federal government will also finalise an agreement on the Petroleum Levy.