A meeting of the Senate Standing Committee on Petroleum was held, during which Petroleum Minister Ali Pervaiz Malik and officials of the Petroleum Division briefed the members.
The Petroleum Minister has attributed the increase in petroleum prices in the country to the petroleum levy, explaining that it was agreed with the IMF during the budget that a levy of Rs. 80 per liter would be charged on petrol. However, due to the war in the Middle East, the situation has changed.
He said that the levy had to be increased to secure the IMF tranche approval. According to the IMF target, the levy on diesel and petrol is required to be raised up to Rs. 160 per liter. He further added that after overcoming the current crisis, petroleum product prices will be deregulated.
During the session, committee member Saifullah Abro asked about the petroleum stock available as of February 28, questioning why petrol and diesel prices were increased by Rs55 per liter each immediately after that date.
Officials from the Petroleum Division responded that after March 1, international market prices surged, with diesel reaching $285 per barrel and petrol rising to $150 per barrel. They also informed the committee that Pakistan currently holds 30 days of petrol reserves and 27 days of diesel reserves.
Petroleum Minister Ali Pervaiz Malik said that expensive fuel purchases were also made to ensure adequate stock availability, emphasizing the need to maintain sufficient reserves.
He added that Pakistan does not maintain strategic petroleum reserves, and existing stocks are held by oil marketing companies.
