ISLAMABAD: The government has defended its recent fuel pricing policy, stating that adjustments in the petroleum levy are intended to support key sectors of the economy while maintaining fiscal stability, says petroleum minister Ali Pervaiz Malik.
In a statement posted on X social account Petroleum Minister Ali Pervaiz Malik said the government is facing significant economic challenges and must therefore make prudent decisions to prevent financial instability in the country.
The minister explained that the increase in diesel prices has been kept relatively lower compared to other petroleum products due to its crucial role in agriculture and transportation.
Diesel powers farm machinery and transport vehicles, and a significant price hike could raise production and logistics costs across the country.
Ali Pervaiz Malik also clarified the structure of the petroleum levy on fuels. According to him, the levy currently stands at Rs105 per liter on petrol and Rs55 per liter on diesel.
Since Pakistan consumes nearly equal quantities of petrol and diesel annually, the average petroleum levy amounts to about Rs80 per liter, meaning the overall tax burden remains unchanged.
He further noted that mismanagement of global petroleum price fluctuations could lead to economic instability.
In this context, he recalled the economic turmoil Pakistan experienced during the 2022 Pakistan economic crisis, which he said was partly linked to the mishandling of fuel prices.
The minister also emphasized the need for political consensus on major economic matters, stressing that critical issues such as energy pricing must be handled carefully to ensure long-term economic stability.
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