The federal government has officially increased the carbon tax on petrol, diesel, High Octane, and furnace oil by Rs. 5 per litre. According to a notification issued by the Petroleum Division, the new tax rate has been doubled from the previous Rs. 2.5 to Rs. 5, taking effect immediately. To minimize the sudden financial impact on consumers, the government has balanced this specific tax hike by applying a corresponding reduction in the standard petroleum levy, keeping the overall current fuel prices stable for the time being.

The underlying consumer impact of this adjustment is expected to surface during the next fortnightly review of petroleum pricing. This administrative adjustment follows a massive relief package recently announced by Prime Minister Shehbaz Sharif, which drastically slashed fuel prices by up to Rs. 74 per litre due to global market shifts and domestic fiscal adjustments. For now, the consumer prices remain fixed at Rs. 299.50 per litre for petrol and Rs. 311.47 per litre for high-speed diesel, while the restructured tax breakdown prepares to anchor future pricing schedules.