As we get closer to the upcoming budget announcement, the entire car industry is tense. Everyone is trying to guess what the final numbers will look like. Recently, PakWheels co-founder Suneel Munj shared his stance on internal combustion engine (ICE) vehicles and how the traditional auto-player market could be completely shaken up.
There are strong reports and insider leaks circulating that the government plans to hit petrol and diesel cars hard. Through a combination of high import duties, soaring GST, and reported heavy additional levies ranging from 10% to 19.5%, traditional vehicles are being made incredibly costly.
Also read: The 2,000cc Question: Which Cars Would Budget 2026’s Carbon Levy Actually Hit?
But looking at this maturely, Suneel raised a critical point: Is this policy rooted in reality, or are we just punishing the common man and ignoring the physical geography of our own country?
Here is a clear breakdown of the key points discussed in his take.
Pakistan’s Mountain Regions Still Depend on ICE Vehicles
Strategically, our Northern belt and mountain regions absolutely need internal-combustion-engine vehicles. It looks good on paper to push everyone toward electric options, but that theory breaks down completely when you hit the actual mountains.
Three major factors are most disturbing these regions right now: high import duty, high GST, and additional levies. These taxes are pushing the prices of heavy-duty vehicles completely out of reach.
The reality is that EVs and NEVs (New Energy Vehicles) simply cannot replace diesel or heavy petrol cars in places like Gilgit-Baltistan or Azad Kashmir right now:
- The Power and Range Problem: Heavy-duty diesel 4x4s and commercial trucks are built for steep climbs and carrying massive loads. In freezing winter temperatures, EV batteries lose power rapidly, significantly reducing their driving range.
- Zero Charging Infrastructure: If a diesel 4×4 runs out of fuel in a remote mountain pass, you can just pour a jerry can of fuel into the tank and keep moving. You cannot do that with an electric car when there are no charging grids for miles.
We need ICE engines in our lives. For heavy-duty performance and mountainous terrain, electric vehicles simply will not work the way traditional engines do.
Motorcycle Riders Are Also Feeling the Budget Pressure
It’s not just car buyers who are facing the heat. The working-class people and students who use motorcycles are also getting heavily affected by these continuous levies.
These are ordinary citizens riding 70cc or 125cc bikes out of pure necessity to get to work or college because public transport options are limited. Yet, they are facing a massive financial burden at the fuel pump. Between the base price of fuel and the accumulated taxes, regular citizens are ending up paying a massive chunk, an additional 250 to 300 rupees per liter in total taxation, just to keep their basic two-wheelers moving.
Reports of the Petrol Levy Doubling
To make matters worse, reports ahead of the budget indicate that the specific levy target is set to be pushed even further.
If we look back at the history of how these things are structured, this specific carbon/petroleum levy was originally introduced at a very nominal 2.5 rupees per liter. Now, reports ahead of the upcoming budget suggest that the government is planning to double this amount, pushing it straight up to 5 rupees per liter.
While a jump from 2.5 to 5 rupees might sound small on paper, it has become a compounding revenue source for the government when added to existing fuel taxes. Ultimately, it means that everyday citizens face an ever-growing, out-of-pocket price just to maintain basic daily mobility.
The Bottom Line
Moving toward electric mobility is a reasonable environmental goal, but implementing heavy taxes on traditional engines introduces immediate challenges. This strategy directly impacts northern regions that rely on internal combustion engines for rugged terrain, while also raising costs for daily motorcycle commuters.
Those are the key takeaways from Suneel’s stance on the upcoming budget situation. What do you think about these reported tax hikes on petrol and diesel vehicles? Let us know your thoughts in the comments below!
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