ISLAMABAD:
Planning Minister Ahsan Iqbal on Thursday ruled out the possibility of an immediate reduction in petroleum levy rates under any pressure from Jamaat-e-Islami but said that the government would consider a gradual decrease in rates from the next budget.
The statement was made the day the Petroleum Minister Ali Pervaiz informed the National Assembly that the petroleum levy collection was part of the International Monetary Fund targets and that the government collected Rs4.4 trillion under the head from fiscal year 2022-23. The four-year collection was Rs227 billion more than the government’s own targets.
A committee has been constituted and “feasible proposals and measures will also be considered for a phased reduction in the petroleum levy for the next budget”, said Iqbal while speaking to the media.
The minister said that from the government’s side, Deputy Prime Minister Ishaq Dar, Planning Minister, and Rana Sanaullah will be part of this committee, while Jamaat-e-Islami will also nominate its three representatives. In this way, representatives from both sides will sit together and discuss these matters, as our common interest is to provide relief to the public, he added.
JI has been protesting against the government’s decision to charge exorbitant petroleum levy on fuel at a time when the global prices were already high due to the ongoing Middle East conflict. The Jamaat-e-Islami delegation also met with the Prime Minister this week.
Iqbal said that within the government’s limited resources, it was making every effort to provide relief to the public.
“Pakistan’s current macroeconomic situation, which we have managed with great difficulty, cannot afford a repetition of the mistakes of the past”, said Iqbal. He said that oil prices were rising across the world, and every country was taking precautionary measures to protect itself from potential economic impacts.
“No one knows what situation may arise tomorrow, how global conditions will unfold, where a drone might fall, and where oil prices might reach as a result”, according to the minister.
We must ensure that we do not take a decision for the sake of temporary public applause today that could turn into a major crisis for the country tomorrow, he added.
The government is currently charging Rs80 per litre levy, Rs5 per litre climate levy and Rs20.56 per litre custom duty, bringing total taxes nearly Rs106.
He said that the government has launched a scheme to provide relief to low-income segments, under which approximately 12.7 million individuals have already registered.
All countries of the world are taking precautionary measures to minimize the effects of potential inflation so that the damage to their economies from a global crisis can be limited. Therefore, this is a time that demands extreme caution and wisdom. We do not need to make emotional decisions or play with the sentiments of the public; rather, keeping the national interest foremost, we must take such measures through which Pakistan can emerge from this global crisis with the minimum possible damage.
Parliament’s proceedings
The petroleum minister submitted the written replies to the National Assembly, sharing details about levy collection.
The Petroleum Minister’s reply showed that the government collected Rs4.4 trillion worth of levy from the fiscal year 2022-23 to 2025-26, as against the target of Rs4.2 trillion. In the last fiscal year, as against the target of Rs1.468 trillion, “actual provisional collection was Rs1.567 trillion”.
The National Assembly was further informed that the budget estimate of petroleum levy for the current fiscal year is Rs1.676 trillion.
“The petroleum levy collection is also part of the fiscal targets agreed under the IMF Extended Fund Facility”, according to the Petroleum Minister.
Ali Pervaiz had in May this year written to the Finance Minister to set the annual target at Rs1 trillion and the rate at Rs50 per litre due to high global prices a sane recommendation that was completely ignored by the government.
The Member National Assembly Miss Sharmila Faruqi also inquired about the available fuel stocks. The Petroleum Minister informed that the national oil supply chain is continuously monitored by OGRA in coordination with refineries, oil marketing companies, Petroleum Division and the Executive Committee of National Coordination and Management Council to maintain adequate stocks and uninterrupted supplies.
He said that for September, 2026, against projected petrol demand of about 692,000 tonnes and domestic refinery availability of 262,000 tonnes, imports of about 511,000 tonnes were planned through the oil marketing companies. In the case of high speed diesel, no imports were planned due to healthy opening stocks and anticipated domestic refinery supplies of around 555,000 tonnes.
As of 22 September 2026, petrol stocks stood at about 395,000 tonnes while another 56,000 tonnes cargo was at berth and 55,000 tonnes was at outer anchorage in Pakistani waters, taking total availability to around 506,000 tonnes. He said that supplies were sufficient for approximately 22 days at average daily sales of 22,500 tonnes.
The minister further said that the high speed diesel stocks stood at about 568,000, equivalent to approximately 30 days’ cover at average daily consumption of 19,000 tonnes.
The minister said that the present consumption of petrol and diesel was broadly in line with estimates, with only a marginal variation. The oil marketing companies have been directed to closely scrutinize any abnormal sales at retail outlets to prevent hoarding, diversion or misuse and ensure uninterrupted supply to genuine consumers, he added.
To a question about the pending payments to oil marketing companies on account of Price Differential Claims, the minister said that Rs66.5 billion bills were still outstanding.
“It is apprised that Rs53.8 billion out of Rs120.3 billion has been disbursed to Oil Marketing Companies (OMCs). The disbursement of further 25% of claims, is subject to confirmation of submission of complete claim as per document”, he added.
The claims submitted by OMCs in this regard are under review by OGRA and will be disbursed upon confirmation. The additional 25% of the PDC amount shall be disbursed after audit and verification by OGRA appointed auditor, for the said purpose the selection of auditor has been done, he added.
