Pakistanis could get further relief in fuel prices as international oil rates decline, Petroleum Minister Ali Pervaiz Malik said on Tuesday.
The minister said the government would pass on the benefit of lower global oil prices to consumers.
He also revealed that local oil refineries would absorb around Rs. 15 billion per month to keep petrol prices approximately Rs. 15 per litre below international rates.
Malik made the remarks during a press conference in Islamabad alongside Information Minister Attaullah Tarar.
Refineries Absorb Rs. 15 Per Litre
According to Malik, petrol prices were due to increase by Rs. 15 per litre on Friday, but local refineries agreed to absorb the additional cost.
He said refineries had earned substantial profits due to higher throughput over the past three months and agreed to provide the relief for 30 days under the government’s new petrol pricing formula.
The minister said petrol import premiums had increased from around $5 per barrel before the war to $20 per barrel. Some Pakistan State Oil (PSO) tenders had recorded premiums of $25 to $30 per barrel.
Pakistan imports around 70 percent of its petrol requirements, making international prices and import premiums important factors in local fuel costs.
Govt Says Rs. 27 Billion Fuel Relief Distributed
Information Minister Attaullah Tarar said more than 15 million people had registered for the Prime Minister’s Fuel Relief Scheme.
The scheme has provided Rs. 27 billion in relief to motorcyclists, rickshaw drivers and owners of cars with engine capacities of up to 800cc, he added.
Tarar also said Pakistan was not facing any fuel shortage.
Petrol and Diesel Prices Already Reduced
The government has already reduced petrol prices by Rs. 3.40 per litre to Rs. 374.51 and high-speed diesel prices by Rs. 7.76 to Rs. 395.20, effective November 3.
The latest announcement suggests that further reductions could follow if international oil prices continue to decline.
For a motorcyclist using 20 litres of petrol every month, the Rs. 15 per litre increase absorbed by refineries would have meant an additional monthly expense of Rs. 300.
However, the current arrangeent with refineries is limited to 30 days, meaning its continuation will depend on future pricing decisions.
