ISLAMABAD: Officials from the Petroleum Division stated on Monday that the principal cause behind the recent increase in fuel prices is the imposition of a Rs117 per litre petroleum levy. This was discussed during a session of the Senate Standing Committee on Petroleum, where lawmakers raised concerns about the sharp rise in fuel rates.
The meeting included Petroleum Minister Ali Pervaiz Malik and senior Petroleum Division officials. Committee member Saifullah Abro inquired about the petroleum stock levels as of February 28 and questioned the rationale behind the Rs55 per litre increase in petrol and diesel prices shortly after that date.
Officials explained that international oil prices surged significantly after March 1, with diesel prices reaching approximately $285 per barrel and petrol around $150 per barrel. They also noted that Pakistan currently maintains fuel stocks sufficient for about 30 days of petrol and 27 days of diesel consumption.
Minister Ali Pervaiz Malik emphasized that the government procured more expensive fuel to ensure adequate stock availability, highlighting that supply maintenance remains a top priority. He further clarified that Pakistan does not hold strategic petroleum reserves; instead, stockpiles are managed by oil companies.
When questioned, the minister assured that data from all oil companies would be shared with the lawmakers and mentioned that the Federal Investigation Agency (FIA) is reviewing the matter. Committee member Amir Chishti urged for audits of all oil marketing companies, to which the minister responded that audits would be conducted for all 42 companies operating in the sector.
Saifullah Abro also requested a detailed written explanation regarding the methodology for determining fuel prices and the taxes applied to petroleum products. Petroleum Division officials reiterated that the Rs117 per litre petroleum levy is the main factor driving the increase in petrol prices.
