Petroleum levy main factor behind fuel price hike, Senate panel told

ISLAMABAD: Petroleum Division officials on Monday said that the main reason for higher fuel prices is the imposition of a Rs117 per litre petroleum levy as lawmakers questioned recent sharp increases in fuel rates.

The briefing was given to the Senate Standing Committee on Petroleum, which met with Petroleum Minister Ali Pervaiz Malik and senior officials of the Petroleum Division in attendance.

During the meeting, committee member Saifullah Abro asked officials to explain the petroleum stock position as of February 28, and questioned why petrol and diesel prices had been increased by Rs55 per litre each shortly after that date.

Petroleum Division officials told the committee that after March 1, international prices rose significantly, with diesel reaching around $285 per barrel and petrol about $150 per barrel.

They said that Pakistan currently holds stocks of around 30 days for petrol and 27 days for diesel.

Petroleum Minister Ali Pervaiz Malik said that the government had also purchased costlier fuel to ensure adequate stock levels, adding that maintaining supplies remained a priority.

He said that Pakistan does not maintain strategic petroleum reserves, and that stocks are held by oil companies.

Responding to questions, the minister said that data of all companies would be shared with lawmakers and added that the matter was also under review by the Federal Investigation Agency (FIA).

Committee member Amir Chishti called for audit of all oil marketing companies, to which the minister responded that audit of all 42 companies would be conducted.

Saifullah Abro also sought a written explanation of how fuel prices are determined and what taxes are applied to petroleum products.

In response, Petroleum Division officials said the main reason for higher petrol prices was the imposition of the Rs117 per litre petroleum levy.