Fuel expenses jump 39% to Rs22b

Federal budget spending on fuel climbed 39 per cent to nearly Rs22 billion, The Express Tribune reported, citing details Finance Minister Muhammad Aurangzeb submitted to the National Assembly. The rise came even though the government has enforced a car monetisation policy that provides cash allowances for transport to senior bureaucrats. No fuel figures for FY26, the year that recently ended, were released, a period marked by abnormal swings in local and global fuel prices.

Fuel outlays reached Rs21.8 billion in FY25, which was Rs6.1 billion more than the year before, while the total from FY21 to FY25 came to Rs69 billion. Aurangzeb also told the house that petrol and diesel savings reached Rs2.1 billion in FY26, answering questions raised by PPP MNA Mirza Ikhtiar Baig on austerity.

Separately, Petroleum Minister Ali Pervaiz Malik told the National Assembly that the diesel levy was increased to Rs80 per litre effective August 20. The federal budget 2026-27 sets a petroleum levy target of Rs1.68 trillion, based on an average levy of Rs80 per litre on petrol and diesel.