Fuel licence holders risk prison under levy bill 2026
A draft law before the National Assembly would tie Oil and Gas Regulatory Authority licences to on-time levy payments and allow jail, fines, and licence loss for defaulting firms.
The Petroleum Products (Petroleum Levy and Climate Support Levy) (Amendment) Bill, 2026, is before the National Assembly and has gone to a standing committee.
OGRA licences would require payment of both the petroleum levy and the climate support levy; unpaid dues could mean licence suspension or cancellation.
Non-payment could bring a prison term of as long as three years, a fine matching the arrears, or both; company directors and partners may also face liability.
Refineries would pay the levies before product leaves the plant; late dues would attract a daily surcharge linked to KIBOR or a 12% yearly floor.
Levy rates themselves are unchanged, so the draft does not alter petrol or diesel pump prices; the state seeks Rs1.6 trillion from the petroleum levy in FY27.