Petroleum Minister Ali Pervaiz Malik said the government will pass the benefit of falling global prices on to the public.
Malik stated that Pakistan’s oil refineries will absorb around Rs. 15 billion a month to keep petrol about Rs. 15 per litre cheaper than international rates. The minister said a Rs. 15 per litre petrol increase was due on Friday, but local refineries agreed to absorb it after earning big profits from higher throughput over the last three months.
This arrangement runs for 30 days under the government’s new petrol pricing formula. Malik addressed a press conference in Islamabad alongside Information Minister Attaullah Tarar, noting that international oil prices have declined. He said petrol import premiums jumped from about $5 per barrel before the war to $20, and some Pakistan State Oil (PSO) tenders reached $25 to $30.
Around 70% of the country’s petrol is imported. Tarar said more than 15 million people have registered for the Prime Minister’s Fuel Relief Scheme, which has provided Rs. 27 billion in relief so far to motorcyclists, rickshaw drivers and owners of cars up to 800cc. Tarar added that the country has no fuel shortage.
Petrol fell by Rs. 3.40 to Rs. 374.51 per litre from November 3, while diesel fell by Rs. 7.76 to Rs. 395.20 from November 3.
