NA panel calls for action against defaulting OMCs on levy payments
- Pakistan govt has set Rs1.677trn target in petroleum levy in FY2026-27
The National Assembly committee is concerned about delayed petroleum levy recovery from oil companies, directing strict enforcement including supply suspension for non-payment to safeguard public funds.
- Government's strategy for petroleum levy collection.
- New enforcement against defaulting oil marketing companies.
- Recent changes in petrol and diesel prices.
The National Assembly’s Standing Committee on Finance and Revenue on Saturday voiced concern over delays in petroleum levy recovery and directed the government to put in place a strict enforcement mechanism, including suspension of supplies to defaulting oil marketing companies (OMCs) after 30 days of non-payment.
The development came as the committee, under the chairmanship of Syed Naveed Qamar, undertook a review of the remaining budgetary proposals.
The committee scrutinised proposed amendments to the Petroleum Products (Petroleum Levy) Ordinance, 1961, with particular focus on strengthening enforcement against defaulting OMCs.
“The chairman observed that OMCs merely act as collection agents for government levies and therefore cannot be permitted to retain public funds. Expressing serious concern over delays in the recovery of petroleum levies, he directed the government to introduce a strict inbuilt enforcement mechanism providing for suspension of product supplies to any defaulting OMC after 30 days of non-payment, while eliminating discretionary extensions or installment facilities that weaken compliance,” the NA Secretariat said.
The committee also recommended linking petroleum levy compliance with regulatory enforcement to safeguard public revenue.
“The chair directed the Petroleum Division to redraft the proposed legislative amendments to explicitly eliminate installment powers for defaulting OMCs and institute immediate supply suspensions.”
Pakistan government plans to collect around Rs1.677 trillion in petroleum levy in the fiscal year FY2026-27, 12% higher than the revised estimate of Rs1.498 trillion in the FY2025-26.
This week, the government reduced the petrol price by Rs74.28 per litre and diesel by Rs67.31 per litre, in what it described as a move to pass on the benefits of lower global oil prices to consumers.
With this reduction, according to a report from brokerage house Optimus Capital Management, the government set the petroleum levy at Rs66.25 per litre for petrol from previously Rs106.74 per litre. Meanwhile, petroleum levy on diesel was increased to Rs72.97 per litre from Rs53.26 per litre.
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