Federal Minister for Petroleum Ali Pervaiz Malik has defended the government’s petroleum levy policy stated that the current structure is designed to balance economic realities while protecting key sectors such as agriculture and public transport.
In a message posted on X, Malik said that during periods of economic strain, there are no easy options for any government and that difficult decisions are sometimes necessary to maintain economic stability.
The minister warned that mishandling the current global oil price shock could have serious economic consequences.
He referenced the situation in Pakistan in 2022, when policy decisions regarding fuel prices contributed to financial instability and pushed the country close to default during the economic crisis.
Malik urged political stakeholders and the public to treat the issue as a national matter rather than a political one. ‘We need to depoliticise politics on such national matters and require your kind support,” he reiterated.
The minister explained that the government kept the increase in diesel prices relatively low because of its critical role in the agricultural sector and public transportation. According to him, cushioning diesel prices helps reduce the burden on farmers and the broader transport system.
Malik also addressed concerns about the petroleum levy, clarifying that the government has not effectively increased the overall levy despite differences in rates between petrol and diesel.
“Pakistan roughly consumes similar amounts of petrol and diesel annually, so a petroleum levy of Rs105 per litre on petrol and Rs55 per litre on diesel yields the same revenue as a uniform levy of Rs80 per litre on both fuels,” he said.
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