Petroleum Minister Ali Pervaiz Malik has said the government cannot revise petroleum levy targets set in the federal budget without consulting Pakistan’s multilateral partners.
Speaking at a meeting of the National Assembly Standing Committee on Petroleum, he said the levy targets were incorporated into the budget and could not be altered unilaterally.
Committee member Saif-ul-Mulook Khokhar questioned the high petroleum levy, calling it a significant burden on consumers and an easy source of tax collection for the government.
Malik said regional tensions had disrupted the availability of petrol, diesel and crude oil, creating a serious challenge for the country’s oil supply chain. He acknowledged the pressure on consumers, saying diesel prices had reached unprecedented levels globally.
The minister described the petroleum levy as non-tax revenue. PPP leader Naveed Qamar, however, said Parliament did not vote on the levy because the matter remained within the executive’s authority.
Malik said the levy currently stood at Rs80 per litre for both petrol and diesel, adding that relevant pricing and levy information was available on the Oil and Gas Regulatory Authority (OGRA) website.
Malik maintained that OGRA was responsible for determining petroleum product prices. He said the government had strengthened the fuel supply chain and curbed profiteering, warning that diesel at Rs600 per litre would have triggered widespread public outrage.
He said about 70% of the country’s diesel demand was being met through local refining. PARCO was operating at full capacity, while Pakistan Refinery and National Refinery were running at 84% and 85% capacity, respectively.
According to the minister, four refineries had reached agreements to produce Euro-V compliant fuel, while negotiations with another refinery were still underway. He said the government was also preparing a daily winter supply plan and had managed to maintain gas availability for consumers during meal times despite challenging circumstances.
He added that the entire fuel supply chain was being shifted towards digitalisation to improve monitoring and efficiency.
