Oil ministry seeks Rs1tr levy cap

The Petroleum Division has opposed increasing the petroleum levy tax target and suggested cutting it to Rs1 trillion while reducing the rate to Rs50 per litre until global prices remain high, warning that higher levies were creating affordability issues and threatening social stability. The division has submitted its budget 2026-27 recommendations to the finance ministry. Discussions have also been held at the Prime Minister's Office to find a way out of the current situation, where consumers face the brunt of higher fuel prices coupled with higher taxes. Petroleum Minister Ali Pervaiz Malik recently wrote to Finance Minister Muhammad Aurangzeb, saying that considering the US?Iran conflict and its impact on global energy prices, reducing reliance on petroleum levies had become imperative to cushion vulnerable segments of society.