Fuel prices are anticipated to be directly impacted by the government’s decision to introduce a carbon charge of Rs 2.5 per liter on gasoline and diesel in the Budget 2025–2026.
A carbon charge of Rs 2,665 per million tons, based on the same per-liter cost, is reportedly going to be applied on furnace oil.
The government’s plan to strengthen regulatory oversight and encourage environmental stewardship includes these additional taxes.
A cargo tracking system is also planned to be put into place with the goal of enhancing supervision and compliance procedures in order to reduce smuggling in the transportation and petroleum industries.
The Budget 2025–2026’s implementation of a carbon levy on petroleum products portends a probable increase in gasoline prices that would impact consumers as well as businesses that depend on energy and transportation.
Earlier, Pakistan Finance Minister Muhammad Aurangzeb, on Tuesday officially introduced the federal budget 2025-26 in special session of National Assembly.
The special session of NA was presided over by Speaker Sardar Ayaz Sadiq.
Finance Minister Senator Muhammad Aurangzeb tabled the Finance Bill amid prayers for national peace and prosperity.
Addressing the House, Aurangzeb described the budget as a landmark effort at a time when the country is navigating complex challenges. “Just as we stood united to defend our sovereignty, we must now act with the same resolve to safeguard our economic independence,” he said.
He praised the civil and military leadership for their firm response to external threats, particularly highlighting Pakistan’s reaction to Indian hostilities. He claimed this “decisive counteraction” elevated the country’s standing in the global arena.
Highlighting an economic shift, Aurangzeb announced that inflation has dropped dramatically to 4.7%, compared to a staggering 29.2% two years ago. He attributed this to tough reforms and increased economic discipline.
