Bill tabled in NA makes petroleum and climate levy payment a licence condition

The Petroleum Levy and Climate Support Levy Amendment Bill 2026 was presented in the National Assembly on Wednesday. Federal Minister for Parliamentary Affairs Tariq Fazal Chaudhry presented it, according to Daily Jang and Daily Pakistan.

The bill proposes that oil marketing companies, refineries and other licence holders be required to pay the petroleum levy and the climate levy. Payment of these levies would become a condition for obtaining a licence from the Oil and Gas Regulatory Authority (OGRA).

Jang reported that refineries would have to pay the levies in advance, before products leave the refinery gate. Every company and refinery would also have to submit a monthly levy payment statement, according to the reports.

For late payment, the bill proposes a surcharge of 1.5 times the six-month KIBOR, or an annual penalty of 12 percent. 24 News described the 12 percent as a minimum annual rate. The bill would also allow unpaid levies to be recovered at the same time under the Customs Act 1969 and the Sales Tax Act 1990.

OGRA would be empowered to suspend a company's licence if the penalty is not paid. 24 News reported that the authority could also suspend or cancel licences for rule violations or non-payment of levies.

The bill proposes punishment of up to three years in prison, a fine, or both for failing to pay levies or penalties. According to 24 News, the fine would equal the levy amount.

Action could be taken against all directors of a company, and directors and partners could be held liable if a company or firm commits an offence. The company, refinery or licence holder concerned would bear the cost of audits.