Rs117 per litre levy behind rising fuel prices in Pakistan

The issue has sparked new questions over petrol prices and fuel pricing in Pakistan.

Petroleum Division officials told a Senate Standing Committee on Petroleum meeting that the petroleum levy had reached Rs117 per litre. They said this levy was the main factor behind the recent rise in petrol and diesel prices.

The meeting was attended by Petroleum Minister Ali Pervaiz Malik and senior Petroleum Division officials. They briefed lawmakers about fuel prices, stock positions and the recent jump that surprised consumers.

Committee chairman Saifullah Abro asked for more transparency in the fuel pricing system. He also requested a written breakdown of taxes included in petroleum prices.

Abro raised questions about petroleum stock levels recorded on February 28. He expressed concern after petrol and diesel prices both increased by Rs55 per litre soon after that date.

Also read: Hyundai Elantra 1.6 launch in Pakistan with shocking price and features soon

Officials told the committee that international oil prices also moved sharply higher after March 1. They said diesel climbed to $285 per barrel while petrol rose to $150 per barrel.

The Petroleum Division said Pakistan currently has enough fuel for the short term. According to officials, the country holds 30 days of petrol stock and 27 days of diesel reserves.

Petroleum Minister Ali Pervaiz Malik said the government had to buy petroleum products at higher prices. He said the purchases were necessary to maintain supply and avoid shortages in the local market.

The minister also said Pakistan does not maintain strategic petroleum reserves. He added that fuel data from all companies would be shared with the committee.

He said the Federal Investigation Agency is also reviewing the matter. This review is expected to examine pricing and supply arrangements in greater detail.

Committee member Aamir Chishti called for a full audit of oil marketing companies. In response, the minister said all 42 oil marketing companies would be audited.

Also read: Pakistan debt rises by Rs21 billion per day to Rs79,882b - Reasons revealed

The committee discussion has increased public attention on how fuel prices are set. Many consumers now want clearer answers on taxes, reserves and future price changes.

The meeting showed that the petroleum levy has become a major part of the fuel price debate. It also made clear that global prices and local taxes are both affecting consumers.

The planned audit may bring more details about pricing and stock management. People will now be watching whether this leads to greater transparency.