Government rules out new fuel curbs, says petrol stocks cover 22 days

ISLAMABAD: The federal government ruled out additional fuel conservation measures on Thursday, telling the National Assembly that petrol stocks are sufficient for about 22 days and diesel for 30, even as Planning Minister Ahsan Iqbal said there would be no immediate cut in the petroleum levy.

In a written reply to MNA Sharmila Faruqui, Petroleum Minister Ali Pervaiz Malik said existing austerity measures would remain in place and current stocks were enough to meet the country's requirements. Petrol stocks stood at around 395,000 tonnes on September 22, he said. Cargoes at berth and at outer anchorage lifted total availability to roughly 506,000 tonnes, equal to about 22 days at average daily sales of 22,500 tonnes. Minute Mirror reported the cargo breakdown as 56,000 tonnes at berth and 55,000 tonnes at outer anchorage.

Diesel stocks totalled about 568,000 tonnes, the minister said, or roughly 30 days of cover at average daily consumption of 19,000 tonnes.

For September, about 511,000 tonnes of petrol imports were planned against projected demand of 692,000 tonnes and domestic refinery supply of 262,000 tonnes. No diesel imports were planned, he said, citing healthy opening stocks and expected refinery supplies of around 555,000 tonnes. Demand, refinery output and import requirements are assessed monthly, and the Oil and Gas Regulatory Authority is coordinating with refineries, oil marketing companies and the Petroleum Division.

Malik said petrol sales rose about 18 per cent year on year in July (higher than the roughly five per cent growth recorded in previous years, possibly because of summer tourism and dealers building inventory) before falling about nine per cent in August compared with July. Prices are linked to a rolling seven-working-day average of Platts free-on-board Arab Gulf prices, and Ogra may calculate and publish daily ex-depot prices without prior approval from the federal government or the prime minister, he said. Oil marketing companies have been directed to investigate abnormal sales at retail outlets, with Ogra field teams able to coordinate with provincial law enforcement.

On price-differential claims, the minister said Rs53.8 billion had been disbursed against total claims of Rs120.3 billion, with further payments subject to verification of documents and an audit by an Ogra-appointed auditor.

Separately, Iqbal told reporters that a committee had been formed to examine reducing the levy in phases: Deputy Prime Minister Ishaq Dar, Iqbal and Rana Sanaullah for the government, with Jamaat-e-Islami nominating three representatives. He said any relief would have to protect economic stability, and a gradual cut might be considered in the next federal budget.

The petroleum levy stands at Rs80 per litre, the climate levy at Rs5 and customs duty at Rs20.56, taking total taxes on fuel to nearly Rs106 per litre. Malik told the assembly the levy had raised Rs4.4 trillion between fiscal years 2022-23 and 2025-26, against a target of Rs4.2 trillion, and that collection is tied to fiscal targets agreed with the IMF under its Extended Fund Facility.