Officials from the Petroleum Division on Monday said the main reason behind the sharp rise in petrol prices was the Rs117 per litre petroleum levy rather than government policies.
The issue came under discussion during a meeting of the Senate Standing Committee on Petroleum. Petroleum Minister Ali Pervaiz Malik and senior officials briefed committee members on fuel pricing and petroleum stock levels following the recent increase in fuel prices.
During the meeting, Senator Saifullah Abro asked for greater transparency in the fuel pricing mechanism and demanded a written detail of all taxes included in petroleum prices.
Petroleum Division officials maintained that the heavy petroleum levy was largely responsible for the latest increase in petrol prices.
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Abro also questioned the government about petroleum reserves as of February 28 and expressed concern over the sudden Rs. 55 per litre jump in petrol and diesel prices after that period.
In response, the minister and Petroleum Division officials said international oil prices increased after March 1. According to officials, diesel prices climbed to $285 per barrel while petrol reached $150 per barrel.
Officials informed the committee that Pakistan currently has petrol reserves for 30 days and diesel stock for 27 days.
Petroleum Minister Ali Pervaiz Malik said the government had to purchase petroleum products at higher rates to maintain supply and ensure sufficient stock availability.
He further stated that Pakistan does not have strategic petroleum reserves.
The minister assured the committee that data from all companies would be shared and added that the Federal Investigation Agency (FIA) was reviewing the matter as well.
Committee member Aamir Chishti called for a complete audit of oil marketing companies, after which the minister announced that all 42 oil marketing companies would undergo an audit.