Oil companies, refineries, and other fuel licensees that fail to pay the petroleum levy or climate support levy could face up to three years in jail under a new bill the government has tabled in the National Assembly.
The Petroleum Products (Petroleum Levy and Climate Support Levy) (Amendment) Bill, 2026, was introduced by Minister for Parliamentary Affairs Tariq Fazal Chaudhary and referred to the relevant standing committee.
The move comes ahead of an important IMF Executive Board meeting on Pakistan’s loan program.
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.
Companies will also have to file monthly levy statements and an annual audited certificate, with the audit cost borne by the company.
What This Means for You
The bill does not change the rate of either levy, so it does not raise or cut petrol and diesel prices. It is aimed at fuel companies, not motorists.
What it does is make sure the money already charged at the pump actually reaches the treasury.
The government aims to collect Rs. 1.6 trillion from the petroleum levy in FY27, and tighter collection is part of its commitments under the IMF programme, which recently reached a staff-level agreement pending Executive Board approval.
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