Pakistan lawmakers demand transparency in fuel pricing and petroleum levies

Pakistan’s National Assembly Standing Committee on Petroleum Division has called for increased transparency regarding fuel pricing and the petroleum levy. Lawmakers expressed concerns that the petroleum levy, originally intended to cushion price fluctuations, has become a regular source of government revenue. The committee emphasized the need for better public awareness regarding the various components of retail prices, including taxes, transportation costs, and international benchmarks.

In response to global oil market volatility and Middle East tensions, the federal government has transitioned to a daily fuel price review mechanism. Recent adjustments saw a slight decrease in petrol prices by Re0.66 per litre to Rs398.30, while high-speed diesel (HSD) increased by Re0.52 per litre to Rs396.24. The Oil and Gas Regulatory Authority (OGRA) has also begun publishing daily prices on its website to improve transparency.

To mitigate the impact of price shocks on consumers, the committee discussed various strategic options. While a price stabilization fund was previously considered, current recommendations suggest focusing on increasing oil reserves and providing targeted cash subsidies instead, citing concerns that a formal stabilization fund could negatively impact sectoral liquidity and the domestic oil sector.