Pakistan is moving to double its carbon levy on petroleum products from Rs. 2.50 to Rs. 5 per litre starting July 1, 2026. The increase is part of the federal budget for FY2026-27 and is meant to support climate goals while raising additional revenue. Officials say the move was already planned under the previous budget's maximum levy cap. Consumers will likely see higher petrol prices as a result, which could raise transport and energy costs across the board. Market watchers expect fuel prices to adjust once the levy takes effect. The final decision will be announced in the upcoming federal budget.
