Pakistan, May 26 -- The federal government is reviewing plans to impose a 20% windfall gain tax on oil companies after petroleum firms reportedly earned massive profits during the recent Gulf conflict. Officials said the proposal aims to recover excess gains generated after fuel prices surged sharply following instability in international energy markets. Authorities are also considering alternative measures that would allow the recovered amount to directly benefit consumers through adjustments in petroleum prices across the country.

According to government estimates, oil refineries and oil marketing companies earned combined profits of nearly Rs130 billion after petroleum prices increased by around Rs55 per litre during the crisis. Offic...