Hafiz Naeem demands fuel levy end as refinery profits soar

Jamaat-e-Islami chief Hafiz Naeemur Rehman has demanded the immediate abolition of the petroleum levy, calling it an unjust tax on ordinary people and dismissing the government's recent fuel relief as far too small. He was speaking at a press conference at the party's headquarters in Karachi on Saturday, UrduPro reported.
Naeem said the government collected Rs1,567 billion through the levy last year and takes roughly Rs150 billion every month, while the relief offered to the public amounts to only Rs26 billion. Petrol costs Rs346 a litre after the government cut the price by Rs6.59 on 7 November.
He pointed to the refineries' own results. Pakistan's listed refineries made a combined net profit of Rs57.06 billion in the July-September quarter, against Rs2.90 billion a year earlier, a rise of about 1,865 per cent, according to figures compiled by Mettis Global. Attock Refinery earned Rs18.65 billion, National Refinery Rs11.57 billion and Pakistan Refinery Rs13.97 billion, each more than ten times its profit a year earlier.
Naeem said the refineries had "escalated profits by up to 1,000 per cent under windfall margins without transferring benefits to consumers". The surge was driven by wider refining margins, the gap between crude oil and finished fuel prices, during disruption in global energy markets. Brokerage estimates put average gross refining margins at around $30 a barrel in the quarter.
The government has already moved to cap margins, cutting the maximum diesel crack spread used in domestic pricing from $41.89 a barrel to $38 on 20 October. Talks between the government and Jamaat-e-Islami reached their final round on 3 November, when both sides agreed relief for farmers and owners of vehicles up to 1,000cc. Naeem said that was not enough, and the levy itself should go.