Rs66b collected through petroleum levy hike, Senate told

Issue of utilisation of levy for N-25 project raised in upper house

ISLAMABAD:

The government has collected over Rs66 billion through the recent increase in petroleum levy, the Senate was informed on Thursday, as a lawmaker questioned why fuel prices have not decreased despite a fall in global oil rates.

Responding to a query raised by Senator Kamil Ali Agha, Federal Minister for Petroleum Ali Pervaiz Malik said the government had increased the levy by Rs8 per liter on petrol and Rs7 per liter on diesel, effective April 16, 2025.

The senator noted that the prime minister had indicated the additional revenue would be used for upgrading the N-25 Highway and sought details of the amount collected and funds transferred for that purpose.

The minister informed the House that the enhanced levy generated Rs66.13 billion from April 16 to September 30, 2025. However, he clarified that the levy—once collected—is deposited into the Federal Consolidated Fund, and its allocation for public infrastructure projects does not fall under the Petroleum Division's mandate.

He said questions regarding the utilization of the levy for the N-25 project must be addressed to the relevant ministry responsible for the public sector development and budgeting.

Later, responding to a question from Senator Jan Muhammad, Federal Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry briefed the Senate on the electricity import arrangement between Pakistan and Iran, particularly for the supply to Makran Division.

He said the electricity import contract, originally signed on November 6, 2002, underwent its 10th amendment on December 27, 2024.