Islamabad, November 27, 2025: The government has collected over Rs66 billion through the recent increase in the petroleum levy (PL), the Senate was informed on Thursday, amid questions on why fuel prices have not dropped despite a fall in global oil rates.
Petroleum Levy Hike Details:
Responding to Senator Kamil Ali Agha, Federal Minister for Petroleum Ali Pervaiz Malik stated that the PL was raised by Rs8 per liter on petrol and Rs7 per liter on diesel, effective April 16, 2025. The enhanced levy generated Rs66.13 billion between April 16 and September 30, 2025.
The senator sought clarification on whether the additional revenue was being used for upgrading the N-25 Highway, as indicated by the Prime Minister. Minister Malik explained that collected funds are deposited into the Federal Consolidated Fund. Allocation for infrastructure projects falls under the purview of the relevant ministries, not the Petroleum Division.
Electricity Import from Iran for Makran Division:
Later, Federal Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry briefed the Senate on Pakistan’s electricity import arrangement with Iran. Originally signed on November 6, 2002, the contract underwent its 10th amendment on December 27, 2024.
Under the latest revision, Pakistan can draw up to 204MW through four interconnection lines, with a contractual take-or-pay obligation of 30 million kWh per month.
Dr Chaudhry added that the Makran–Gwadar region has been connected to the National Grid, reducing dependency on imported electricity. The project, titled “Interconnection of Isolated Makran/Gwadar Area with National Grid System”, was completed in June 2023 at a cost of Rs12.157 million, adding 80MW of capacity. The National Grid now serves as the fifth electricity source for the region, complementing the four interconnections with Iran.