Petroleum products: Bill seeking to amend law governing 2 levies tabled in NA

ISLAMABAD: The Petroleum Products (Petroleum Levy and Climate Support Levy) (Amendment) Bill, 2026, was introduced in National Assembly on Wednesday, seeking to amend the law governing the two levies amid mounting criticism of high fuel prices and calls for relief to consumers.

The bill was introduced by Minister for Parliamentary Affairs Tariq Fazal Chaudhary on behalf of Petroleum Minister Ali Pervaiz Malik and subsequently referred by the chair to the relevant standing committee for further consideration.

According to the statement of objects and reasons, the proposed legislation seeks to amend the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961, to strengthen the legal framework for the timely payment, collection, recovery and reporting of the two levies and to align the existing law with the licensing regime of the Oil and Gas Regulatory Authority (Ogra).

The bill was introduced after the government held consultations with Pakistan People’s Party (PPP), a key coalition partner, which conveyed its reservations about the proposed legislation and other political matters, according to sources.

The consultative meeting was held in the chamber of NA Speaker AyazSadiq. The PPP delegation comprised Sherry Rehman, Naveed Qamar, Farooq Naek, Hussain Tariq and Zameer Ghumro.

The government was represented by Sadiq, Law Minister Azam Tarar and Parliamentary Affairs Minister Tariq Fazal Chaudhary.

Sources said the PPP raised concerns over the proposed amendment during the meeting. The government representatives assured the party’s delegation that its reservations would be addressed.

The legislation comes at a time when the petroleum levy has become a subject of growing political debate, with opposition parties and consumer advocates demanding measures to ease the burden of high fuel costs on households.

Jamat-e-Islami (JI) has been pressing the government to abolish the petroleum levy to provide relief to consumers.

The party’s demand has gained renewed attention amid concerns over the impact of fuel prices on household budgets and the cost of transport and essential goods.

The government, meanwhile, has begun consultations on possible relief measures. Following talks between Prime Minister Shehbaz Sharif and JI chief Hafiz NaeemurRehman, a 6-member committee comprising government and JI representatives was proposed to examine ways to expand the fuel relief scheme and formulate proposals for phasing out petroleum levies in the next federal budget.

The introduction of the amendment bill does not, in itself, signal a reduction in the rates of either levy.

Its stated purpose is to strengthen the legal and administrative framework governing their payment, collection, recovery and reporting.

The Railway Board Bill, 2026, which seeks to provide for the revamping and restructuring of the Railway Board, was also introduced in the House and referred to the relevant standing committee for further consideration.

The house also referred the National Fund for Cultural Heritage (Amendment) Bill, 2026, and the Netting of Financial Arrangements Bill, 2026, to a joint sitting of parliament after Senate failed to pass them within 90 days of their passage by National Assembly.

The House also passed three bills – the National College of Arts Institute (Amendment) Bill, 2025, the Centre for Clinical Psychology Centres (Amendment) Bill, 2026, and the Area Study Centres (Amendment) Bill, 2026 – and adopted a resolution extending the Oil and Gas Regulatory Authority (Ogra) Amendment Ordinance, 2026, for a further 120 days. Minister for Parliamentary Affairs Tariq Fazal Chaudhary moved the bills and the resolution.

Copyright Business Recorder, 2026