FCC urged to fix hearing date in PL petition

The Federal Constitutional Court (FCC) has been asked to schedule a hearing for a petition that challenges the introduction of a high petroleum levy and the price hike in petrol products. Zulfikar Ahmed Bhutta submitted a request on May 1 this year, urging the FCC to compel the government to retract the recent increase in petroleum product prices.

The petition was filed by Hafiz Naeem-ur-Rehman, head of Jamaat-e-Islami, who is requesting the FCC to establish an independent expert panel to assess the constitutionality, fiscal, economic, and federal impacts of the current petroleum levy system. Both petitions were accepted by the FCC Registrar's Office, which did not express any reservations.

The petitions were filed under Article 175E of the Constitution. Bhutta's argument is that the federal government has not managed to lower petrol prices despite normal oil prices. He asserts that the high fuel costs have led to increased prices of vegetables, food items, public transportation fares, and children's school vans. The government had promised to impose a petroleum and carbon levy in accordance with an agreement with the International Monetary Fund (IMF).

The levy on both products has remained constant at Rs80 per litre. In Pakistan, a petroleum levy constitutes a federal tax on petroleum products like petrol, high-speed diesel, kerosene, and light diesel oil. It is one of the government's primary non-tax revenue sources. The levy is a fixed fee per litre collected by the government on fuel sales, as specified in laws such as the Petroleum Products (Petroleum Levy) Ordinance, 1961, and subsequent financial regulations. The federal government can modify the levy through finance bills and statutory regulatory orders.