Fuel licensees, refineries, and oil companies that neglect to submit the climate support levy or petroleum levy risk a prison sentence of up to three years under fresh legislation presented by the government in the National Assembly.
Minister for Parliamentary Affairs Tariq Fazal Chaudhary presented the Petroleum Products (Petroleum Levy and Climate Support Levy) (Amendment) Bill, 2026, which was subsequently sent to the proper standing committee.
This action arrives prior to a significant IMF Executive Board meeting concerning the loan program of Pakistan.
What the Bill Proposes
- Paying both levies becomes a condition of every OGRA licence.
- Refineries must deposit the levies in advance, before fuel leaves their gates.
- Late payers face a surcharge of 1.5 times the six-month KIBOR or 12 percent a year, whichever is higher, charged daily until paid.
- OGRA can suspend or cancel the licence of a defaulter.
- Failing to pay in full can bring up to three years in prison, a fine equal to the unpaid amount, or both.
- Directors and partners of a defaulting company can also be held liable unless they prove it happened without their knowledge or consent.
Firms must additionally submit monthly levy statements along with an annual audited certificate, while the company covers the expense of the audit.
What This Means for You
The legislation leaves the rates for both levies untouched, meaning diesel and petrol prices are neither increased nor decreased. The target is fuel companies rather than drivers.
Instead, the measure ensures that funds already collected at fuel pumps successfully arrive at the national treasury.
Authorities project collecting Rs. 1.6 trillion from the petroleum levy during FY27, and stricter collection fulfills obligations tied to the IMF program, which secured a staff-level agreement awaiting Executive Board clearance.
