ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz, while explaining the reason for the increase in petrol prices, said that the price of petrol is high due to the petrol levy, if the levy is not increased, there would be a problem in getting approval from the IMF board.
According to details, important revelations regarding the prices of petroleum products, levy and oil reserves came to light in the meeting of the Senate Standing Committee on Petroleum, while there was a tough question and answer session between the government and opposition members.
Federal Minister for Petroleum Ali Pervaiz Malik told the meeting that an emergency meeting was called by the Prime Minister and the Field Marshal as soon as the war situation started, while the inter-ministerial committee was reviewing the situation on a daily basis.
He said that the country was facing not only oil but also a fertilizer crisis. According to Petroleum Division officials, Pakistan imports 47 percent of its crude oil from Saudi Arabia and 45 percent from the UAE.
The meeting was informed that on March 1, the country’s crude oil reserves were 436,000 metric tons, which has now increased to 515,000 tons, while diesel reserves increased from 490,000 tons to 597,000 tons.
Senator Saifullah Abro raised the question of why prices were increased by Rs 55 when there was already oil in the country? To this, the Petroleum Minister replied that it was necessary to increase prices to maintain stock and liquidity.
The Federal Minister said that the price of petrol is high due to petrol levy, . The levy is a requirement of our budget, the levy had to be increased under the IMF program.
He said that an agreement was reached with the IMF on a levy of Rs 80 per liter, while at present a total levy of Rs 117 is being collected on petroleum.
Ali Pervez Malik said that if the levy was not increased, there would be difficulties in getting approval from the IMF board. Many countries have reduced taxes on petroleum, but Pakistan cannot do so due to its economic program.
He said that at present, our focus is on purchasing crude oil instead of diesel and petrol. The price of diesel has been increased by 48% in Pakistan. Despite being a major petroleum producer, the UAE increased the price by 72% in the UAE and 88% in New Zealand.
It was also informed in the meeting that an LNG ship from Qatar has reached Pakistan while another ship will anchor at Port Qasim tomorrow. The government is following a policy of purchasing cheap LNG and currently LNG is available for $18 to $20.
The committee meeting also discussed in detail the refinery system, audit of oil companies, profiteering and pricing methods.
