Budget 2026-27: Petrol prices in Pakistan likely to increase from July

ISLAMABAD – The federal government is likely to increase the Climate Support Levy on petrol and diesel in the upcoming Budget for the fiscal year 2026–27. Pakistan introduced the Climate Support Levy on petroleum products during the current fiscal year 2025-26, initially setting it at Rs2.5 per litre. According to reports, the government is considering doubling the levy in the next fiscal year, raising it from Rs2.5 to Rs5 per litre. The proposed adjustment is expected to be part of broader revenue measures in the upcoming federal budget. If the levy is increases, the petrol prices may go up from July 2026 in Pakistan. The federal government is set to present its budget for the fiscal year 2026-27 in the National Assembly today, with an estimated outlay of around Rs17.5 trillion, as public attention remains focused on expected relief measures. Finance Minister Muhammad Aurangzeb will present the budget as the NA session set to start at 3pm. The budget reportedly includes a proposed tax revenue target of Rs15.267 trillion. A significant portion of the budget has been allocated for debt servicing, amounting to Rs7.824 trillion, reflecting the continued financial burden on public finances. The defence allocation for the upcoming fiscal year is expected to stand at Rs3 trillion. In addition, the government is considering a possible increase in salaries and pensions for government employees, according to sources. The budget also includes a planned petroleum levy collection target of Rs1.727 trillion. On the external sector side, the government is expected to set an export target of $32.8 billion, while imports are projected at $70 billion.