Pakistan’s Petroleum Division has blamed the recent increase in fuel prices on the high petroleum levy instead of government pricing policies.
The issue was discussed during a meeting of the Senate Standing Committee on Petroleum held on Monday. Petroleum Minister Ali Pervaiz Malik and senior officials briefed committee members on fuel pricing, stock levels, and supply management.
During the meeting, officials said the Rs117 per litre petroleum levy was a major reason behind the rise in petrol prices. They explained that taxes added to fuel costs have increased the burden on consumers.
Senator Saifullah Abro questioned the pricing system and asked officials to provide a complete written breakdown of all taxes included in fuel prices. He stressed the need for transparency in the Petroleum sector and demanded clear details about how prices are calculated.
Abro also raised concerns about petroleum stock levels after fuel prices jumped sharply. He questioned why petrol and diesel prices increased by Rs55 per litre soon after February 28.
Officials from the Petroleum Division replied that international oil prices increased significantly after March 1. According to the briefing, diesel prices reached $285 per barrel in global markets, while petrol prices climbed to $150 per barrel.
The committee was informed that Pakistan currently has enough petrol stock for 30 days and diesel reserves for 27 days. Officials said these reserves were being maintained to avoid shortages across the country.
Petroleum Minister Ali Pervaiz Malik said the government had to purchase fuel at higher international prices to ensure continuous supply. He added that Pakistan does not have strategic petroleum reserves, which makes the country more vulnerable to global price changes.
The minister also said that records from all oil marketing companies would be shared with the committee. He confirmed that the Federal Investigation Agency is reviewing the matter as well.
Committee member Aamir Chishti called for a complete audit of oil marketing companies operating in Pakistan. In response, the minister announced that all 42 oil marketing companies would undergo audits.
In other related news also read How Much Will Petroleum Prices Increase This March?
The latest discussion has increased public attention on Petroleum pricing policies and the impact of taxes on fuel costs in Pakistan.
