ISLAMABAD, Feb 12: The Ministry of Petroleum has claimed that it is incorrect to assume that there was any proposal under consideration to levy tax on petroleum products for construction of strategic storages.

Responding to a report, “New tax on petroleum products under study,” carried by Dawn on Monday, the ministry expressed concern that such “speculative stories” created misunderstanding in the public mind on consumer prices of petroleum.

Dawn stands by its report. The relevant portion from the minutes of the Petroleum Advisory Council’s meeting, presided over by the petroleum minister and attended by almost all the senior officials of the ministry and OMCs’ representatives, is reproduced below:

“Secretary, was of the view that we should review the strategic storage requirements in consultation with the Ministry of Defence separately to predetermine the level of additional storage/stock requirement keeping in view the perception of threat.

“The secretary stated that the Ministry of Petroleum and Natural Resources may arrange funds by imposition of levy on petroleum products and the funds be placed at the disposal of the Ministry of Defence or NLC to construct, maintain and operate strategic storage for which a mechanism would have to be developed in consultation with the OMCs. It was agreed that a separate working paper for this purpose will be prepared and the issue will be discussed with the ministry of defence”.