Islamabad, June 10, 2025: The government is expected to increase the prices of petroleum products significantly as a new carbon levy of 2.5% is being introduced on petrol, diesel, and furnace oil. According to the finance minister, this levy will gradually rise to Rs. 5 per liter by 2026.
In addition, a new energy vehicle policy has been formulated to promote the use of electric vehicles, especially two- and three-wheelers. The policy aims to encourage sustainable transportation while reducing environmental impact.
To support this transition, a graded carbon levy will also be imposed on the manufacturing and sale of conventional vehicles, starting at 1%.
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These measures are part of the government’s broader push toward cleaner energy and reducing the country’s carbon footprint.
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