Govt Officially Slaps Rs. 2.5 per Liter Climate Levy on Petrol, Diesel, High-Octane

The government has officially imposed a climate support levy of Rs. 2.5 per liter on Motor Spirit (MS) petrol, High-Speed Diesel (HSD), high-octane and furnace oil, according to the latest notification issued by the Ministry of Energy (Petroleum Division). The decision has come into effect as of July 1, 2025 (today). The levy on high-speed diesel has been set at Rs. 74.51 per liter for retail sales, with direct sales incurring a higher levy of Rs. 83.15 per liter for diesel. The levy on petrol at retail outlets is now Rs. 75.52 per liter and Rs. 84.16 per liter for direct sale. Meanwhile, the levy on Furnace Oil has been fixed at Rs. 77 per liter for retail sales and Rs. 77 per liter for direct sales. The Petroleum Division has further notified the petroleum development levy on High Octane Blending Component (HOBC) at Rs. 75.52 per liter at retail outlets and Rs. 77.67 per liter for direct sales. This comes as the federal government in the final quarter of 2024-25 opted to abolish the Fifth Schedule of the Petroleum Development Levy through a presidential ordinance, removing the legal cap on the maximum levy that can be imposed on petroleum products. Later in last month’s budget reveal for fiscal year 2025-26, it was revealed there was going to be a climate support levy on petroleum products. This has now been implemented.