Carbon levy of Rs2.50 imposed on fuel in budget

(Web Desk): The government announced a Rs2.50 per liter carbon levy on petroleum products in the budget.

Presenting the budget, Federal Minister for Finance Muhammad Aurangzeb stated that to discourage excessive use of fossil fuels and to provide financial resources for climate change and green energy programs, it is proposed to impose a carbon levy of Rs2.50 per liter on petrol, diesel, and furnace oil for the fiscal year 2025-26.

He said the carbon levy will be increased to Rs5 per liter in fiscal year 2026-27. Additionally, petroleum levy on furnace oil will also be imposed as per the rates announced by the federal government.