Govt collecting Rs80 per litre levy on petrol: Petroleum minister

Federal Petroleum Minister Ali Pervaiz Malik said on Tuesday that the government is collecting Rs80 per litre on petrol and around Rs70 per litre on diesel in petroleum levy, adding that removing the levy would require an alternative source of revenue.

Speaking at a meeting of the National Assembly Standing Committee on Petroleum, the minister said Pakistan imports around 70% of its petrol products and that refined petroleum products remain expensive in the international market.

He said a decline in crude oil prices does not necessarily translate into lower petrol prices, as fuel prices are determined by the (OGRA) under a transparent pricing formula linked to the Platts benchmark.

Malik said insurance and freight costs surged during the recent conflict, but Pakistan did not face fuel shortages even for a single day. He added that petroleum levy collections are deposited into the federal treasury and the government is considering making Platts benchmark prices public to improve transparency.

The minister said the government is working on deregulating the petroleum sector, expressing hope that greater private-sector competition would help reduce fuel prices. He added that the refinery upgradation policy has been submitted to the federal cabinet and improving domestic refining capacity remains a government priority.

He also said reforms in the gas sector are underway with support from the World Bank, while preparations are being made for the privatisation of gas companies. Malik stressed the need to expand oil storage capacity, improve port governance, introduce night navigation facilities at ports and upgrade infrastructure to strengthen the country's energy security.