Pakistan’s National Assembly has received a new bill proposing stricter regulations for petroleum companies, including mandatory levy payments, tougher financial penalties, and possible licence cancellations.
The Petroleum Levy and Climate Support Levy Bill 2026 was introduced on Wednesday, October 28, to strengthen financial accountability across the petroleum industry.
Petroleum Levy Payments to Become Mandatory for OGRA Licences
Under the proposed legislation, oil refineries and oil marketing companies must clear their petroleum and climate support levy payments to obtain licences from the Oil and Gas Regulatory Authority (OGRA).
Companies would also be required to submit monthly reports detailing their levy payments.
The government aims to strengthen financial monitoring and prevent payment delays.
Late Payments Could Trigger Heavy Financial Penalties
The bill proposes a surcharge on overdue payments.
The penalty would be calculated at 1.5 times the six-month Karachi Interbank Offered Rate (KIBOR), with a minimum annual rate of 12%.
Authorities could also recover unpaid levies through proceedings under the Customs Act 1969 and Sales Tax Act 1990.
Petroleum Companies Face Licence Cancellation and Imprisonment
OGRA would receive additional powers to suspend or cancel licences when companies violate regulations or fail to pay required levies.
Individuals responsible for violations could face imprisonment for up to three years, fines equivalent to the outstanding levy, or both.
Company directors and business partners could also face legal responsibility.
Additionally, companies and licence holders would be required to cover relevant audit expenses.
The proposed legislation seeks to improve compliance and strengthen oversight of petroleum revenue collection.
However, the measures remain proposals and would require legislative approval before becoming enforceable.
