ISLAMABAD: The Federal Constitutional Court (FCC) has admitted two constitutional petitions challenging the imposition of the petroleum levy and recent increases in petroleum product prices, marking a significant legal development in the ongoing debate over fuel taxation and pricing policies.
According to court sources, the FCC registrar has formally allotted case numbers to both petitions, allowing them to proceed for judicial consideration.
One petition was filed by Jamaat-e-Islami chief Hafiz Naeemur Rehman, who has urged the court to direct the establishment of an independent, expert-assisted commission to examine the constitutional, fiscal, economic, and federal implications of the current petroleum levy framework.
The petition challenges the government’s decision to impose a petroleum and carbon levy under commitments made to the International Monetary Fund (IMF). At present, the petroleum levy stands at Rs117.41 per litre on petrol and Rs42.60 per litre on high-speed diesel (HSD).
The second petition, filed by advocate Zulfikar Ahmed Bhutta on May 1, seeks court intervention to reverse the recent increase in petroleum product prices. The petitioner has requested the FCC to direct the federal government to withdraw the price hike, arguing that it places an excessive burden on consumers already facing rising living costs.
Both petitions were filed directly before the FCC under Article 175E of the Constitution. Notably, the registrar’s office did not raise any preliminary objections, paving the way for the petitions to be formally entertained.
The court took up the petitions several weeks after their filing. The FCC was established under the 27th Constitutional Amendment and serves as the country’s highest constitutional forum for adjudicating constitutional matters.
In Pakistan, the petroleum levy is a federal charge imposed on petroleum products, including petrol, high-speed diesel, kerosene oil, and light diesel oil. It remains one of the government’s largest sources of non-tax revenue.
Unlike sales tax, which is calculated as a percentage of a product’s value, the petroleum levy is a fixed amount charged per litre. The levy is imposed under the Petroleum Products (Petroleum Levy) Ordinance, 1961, and related finance laws, while the federal government retains the authority to revise the levy through finance legislation and statutory regulatory orders (SROs).
The outcome of these petitions could have significant implications for fuel pricing policy, government revenue collection, and the broader constitutional debate surrounding taxation and economic governance in Pakistan.
Story by Hasnaat Malik
