The federal government has set its sights on generating Rs 200 billion through an additional petroleum levy to fund extensive road construction projects across Pakistan. This strategy was outlined during a Senate briefing by the Petroleum Division, highlighting the collection and purpose of the fuel surcharge.
According to the details provided, an extra levy of Rs 8 per litre on petrol and Rs 7 per litre on diesel was introduced on April 16, 2025. The surcharge is aimed exclusively at financing road-building initiatives nationwide. Between April 16 and September 30, a total of Rs 66.13 billion has been collected from consumers under this levy.
The Petroleum Division clarified that while it collects the additional charges, it does not hold authority over the allocation of the funds or project execution. Its responsibility is limited to implementing the levy as directed by the federal government. Officials emphasized that the surcharge will continue to be part of petroleum prices until the government achieves its target.
This initiative forms a critical part of the government’s broader plan to enhance road connectivity, ensuring safer and more efficient transportation across provinces. By raising Rs 200 billion, the government aims to accelerate infrastructure development, particularly in underserved areas.
Mari Petroleum Announces New Oil and Gas Discovery in Sindh
In related energy sector developments, Mari Petroleum Company Limited (MPCL) reported a new oil and gas discovery at the Mari Ghazij CFB-1 exploration well in Sindh. Drilling for the well began on September 12, 2025, and successfully reached the Sill formation at a depth of 1,195 meters.
Initial testing revealed production of 305 barrels of oil per day and 3 million standard cubic feet of gas per day (MMSCFD). The tests were conducted at a 48/64-inch choke size and 225 psi pressure, confirming the well’s viability.
This discovery marks the second successful oil-producing well in the Mari Ghazij area, with Mari Petroleum holding 100% operatorship in the Mari D&P Lease. Managing Director and CEO Faheem Haider praised the company’s geoscience team for their achievement and confirmed that Mari Petroleum will continue exploring the region to identify additional hydrocarbon reserves.
Future Impact
The combination of fuel levy collection and new hydrocarbon discoveries underscores Pakistan’s efforts to strengthen infrastructure and energy security simultaneously. The Rs 200 billion fuel surcharge is expected to expedite road development projects, while ongoing exploration ensures a stable supply of domestic oil and gas, reducing reliance on imports.
