Govt collects over Rs66bn from petroleum levy hike, Senate told

ISLAMABAD: The government has collected more than Rs66 billion through the recent increase in petroleum levy, the Senate was told on Thursday, as lawmakers questioned why domestic fuel prices have not fallen in line with global oil rates.

Responding to a query from Senator Kamil Ali Agha, Petroleum Minister Ali Pervaiz Malik said the levy was increased by Rs8 per litre on petrol and Rs7 per litre on diesel, effective April 16, 2025. He said this adjustment generated Rs66.13 billion in revenue between April 16 and September 30.

The senator noted that the prime minister had earlier indicated that the additional levy would help finance upgrades to the N-25 Highway and asked for details of the amount collected and transferred for that purpose. The minister said the levy, once collected, is deposited in the Federal Consolidated Fund, and its utilisation for public projects does not fall under the Petroleum Division. Questions about allocation for the N-25 project, he said, must be directed to the ministry responsible for development spending.

Later, in response to a question from Senator Jan Muhammad, Parliamentary Affairs Minister Dr Tariq Fazal Chaudhry briefed the Senate on the electricity import arrangement with Iran for Makran Division. He said the power supply contract, first signed on November 6, 2002, underwent its tenth amendment on December 27, 2024.