Punjab residents pay an additional tax on Petrol on public transportation

To encourage public transportation in Lahore, the Punjab government has decided to impose a “petrol tax”.

Under the agreed mechanism, residents of the provincial capital will be charged an additional fee of Rs. 1-3 per liter in addition to the regular price for petroleum products regulated by the federal government.


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The decision was made on the recommendation of the Punjab Mass Transit Authority (PMA) and will take effect on March 1.

Zahid Shah, GM Operations of GM, said taxing on gasoline is standard practice to encourage public transportation around the world.

He claims the “gasoline tax” will result in more than Rs. Annual revenue of 1.5 billion euros will be provided by the provincial government to subsidize public transport in Lahore.

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