The federal government has revised the levy structure on petroleum products by reducing the Petroleum Levy (PL) on petrol and high-speed diesel while simultaneously increasing the Climate Support Levy (CSL), resulting in no overall change in the total levy burden on consumers.

According to a notification issued by the Petroleum Division, the revised rates will take effect from July 2, 2026, replacing the notification issued on June 26, 2026. The changes have been made under the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961.

Under the revised structure, the Petroleum Levy on petrol has been reduced from Rs66.64 per litre to Rs64.14 per litre, while the levy on high-speed diesel (HSD) has been lowered from Rs79.54 per litre to Rs77.04 per litre.

At the same time, the Climate Support Levy on both petrol and high-speed diesel has been increased from Rs2.50 per litre to Rs5.00 per litre, fully offsetting the reduction in the Petroleum Levy.

The adjustment effectively reallocates a portion of the fuel levy from the Petroleum Levy to the Climate Support Levy without increasing the overall tax burden on petroleum products.

The revised levy structure will remain in force until further orders as the government continues to implement its fiscal and environmental policy measures outlined in the FY2026-27 budget.