Petrol Expensive Due to Rs117 Per Litre Levy, Petroleum Division Officials Tell Senate Committee
Islamabad: Officials from Pakistan’s Petroleum Division informed the Senate Standing Committee on Petroleum that the high price of petrol in the country is largely due to the imposition of a Rs117 per litre levy.
During the committee meeting, chaired in Islamabad, Ali Pervaiz Malik and Petroleum Division officials briefed lawmakers on fuel pricing and petroleum stock management.
Committee member Saifullah Abro questioned officials about the country’s petroleum reserves as of February 28 and criticized the sharp increase of Rs55 per litre in petrol and diesel prices shortly afterward.
In response, Petroleum Division officials stated that after March 1, diesel prices in the international market surged to $285 per barrel, while petrol prices reached around $150 per barrel. They explained that Pakistan had to purchase expensive petroleum products to maintain fuel supplies and ensure stock availability.
Officials further admitted that Pakistan currently does not maintain strategic petroleum reserves and said authorities were compelled to keep oil stocks available despite rising global prices.
Petroleum Minister Ali Pervaiz Malik assured the committee that detailed data of all oil marketing companies would be provided, adding that the matter was also being reviewed by the Federal Investigation Agency (FIA).
Committee member Amir Chishti suggested conducting audits of all oil marketing companies. Responding to the proposal, the petroleum minister agreed and stated that audits of all 42 oil marketing companies could be carried out.
During the session, senators also sought a written breakdown of taxes imposed on petroleum products and details regarding the mechanism used for determining fuel prices.
