Key Takeaways
- Petroleum Minister Ali Pervaiz Malik announced daily fuel price adjustments.
- The decision follows renewed hostilities between Iran and the US in the Persian Gulf.
- Ogra will publish factors leading to price changes, aiming for greater transparency.
Petroleum Minister Ali Pervaiz Malik has announced that fuel prices will be fixed daily due to fluctuations in international market prices following renewed hostilities between Iran and the US. This decision was made by the Cabinet and Prime Minister Shehbaz Sharif, as reported by Dawn.
Addressing a press conference alongside Information Minister Attaullah Tarar, Malik thanked the nation for their patience during this period of uncertainty. He noted that despite efforts from Chief of Defence Forces (CDF) Field Marshal Asim Munir and the prime minister to de-escalate tensions, the situation in the Persian Gulf seemed to be worsening.
Malik stated, 'The Cabinet and prime minister have decided … Ogra will be given the responsibility to daily decide the fuel prices based on the international market.' He added that this decision would ensure that fuel rates are adjusted according to real-time market conditions without interference from government officials or anyone else.
To increase transparency, Malik said that Ogra would not only publish the final fuel rates but also explain the factors leading to these changes. This move is part of the government's efforts to make the system more understandable for citizens and address concerns about price increases.
The petroleum minister acknowledged that this decision would add a burden on citizens but emphasized its necessity for the state. He noted, 'Although the decision will surely add a burden on citizens, they will see how it is necessary for the state.'
Malik also highlighted recent reductions in fuel prices, stating that diesel had dropped from Rs520 to the range of Rs300 today, and petrol saw a significant price reduction of Rs70-80 when international markets adjusted.
Regarding levies, Malik noted that the petrol levy and carbon support levy on petrol and diesel were still low. He added that the government was working towards greater transparency and reducing the burden of indirect taxation. The daily price announcements would be based on a seven-day weekly average in the international market.
The decision to fix fuel prices daily is seen as a step towards deregulation, ensuring that prices in Pakistan are adjusted according to real-time international market conditions without any delays or interference.
The Cabinet and prime minister have decided … Ogra will be given the responsibility to daily decide the fuel prices based on the international market.
Ali Pervaiz Malik, Petroleum Minister
Although the decision will surely add a burden on citizens, they will see how it is necessary for the state.
Ali Pervaiz Malik, Petroleum Minister
