By Bashir Khan
ISLAMABAD: Petroleum Minister Ali Pervaiz Malik has said the government cannot change petroleum levy targets allocated in the budget without consulting its multilateral partners.
“The targets for the petroleum levy are allocated in the budget, and we cannot change them without our multilateral partners,” Malik said during a meeting of the National Assembly Standing Committee on Petroleum.
Committee Chairman Mustafa Mahmood said diesel availability was more important than petrol as agriculture and goods transport were dependent on the fuel.
“Why is there such a high levy on petrol and diesel?” committee member Saif-ul-Mulook Khokhar asked, describing the levy as a “very heavy burden” on the public and saying it was an easy means of tax collection.
Malik said regional tensions had affected the supply of petrol, diesel and crude oil, describing the resulting disruption to oil supplies as a major crisis.
“The world has never seen diesel this expensive,” the petroleum minister said, adding that the government was aware of the difficulties faced by the public.
He said the petroleum levy was a form of non-tax revenue, while PPP leader Naveed Qamar said parliamentarians did not vote on the levy because it remained in the executive’s hands.
“The levy is there, and it is Rs80-80,” Malik said, adding that all relevant information had been made available on the Oil and Gas Regulatory Authority (OGRA) website.
Qamar questioned why the government was involved in determining petroleum product prices, saying it had shifted from a 30-day pricing formula to a 15-day formula and then moved towards daily pricing.
Malik said OGRA determined petroleum product prices.
“If the diesel price were Rs600 per litre today, there would have been an uproar,” he said, adding that the government had improved the supply chain and ended profiteering.
The minister said around 70% of diesel was refined locally, while PARCO was operating at full capacity. Pakistan Refinery was operating at 84% capacity and National Refinery at 85%, he added.
Malik said four refineries had signed agreements to produce Euro V-compliant fuel, while talks were ongoing with another refinery.
He said the government was working on a winter plan on a daily basis and had ensured gas supplies to consumers during meal times despite difficult conditions.
“The fuel supply chain is being completely digitalised,” Malik said.
