Petroleum Minister Ali Pervaiz Malik says refineries will absorb additional costs to keep petrol Rs15 per litre below international prices, while the government prepares measures to ensure winter gas supplies.
Local oil refineries will bear an additional financial burden of approximately Rs15 billion per month to help keep petrol prices Rs15 per litre below international market levels, Minister for Petroleum Ali Pervaiz Malik said on Monday.
Speaking at a press conference, the minister said petrol prices were expected to rise by Rs15 per litre on Friday. However, local refineries supported the government’s intervention, helping maintain existing prices and provide relief to consumers.
He said international oil market conditions remained challenging, with import premiums increasing considerably. Before October 31, the approved premium for petrol imports stood at around $20 per barrel, but subsequent tenders attracted premiums exceeding $30 per barrel.
According to the minister, domestic refineries meet approximately 30 per cent of Pakistan’s petrol requirements, while the remaining 70 per cent is imported at international market prices.
He said Prime Minister Shehbaz Sharif had consulted local refineries to identify ways to ensure affordable fuel supplies. The government wanted to avoid shortages similar to those experienced in France, Indonesia and other countries.
Malik thanked refineries for increasing production and supporting the government during the difficult period. He added that refinery petrol crack margins had increased from approximately $5 to $20 per barrel, while refineries had earned substantial profits over the preceding three months.
The minister said the government remained committed to protecting consumers while considering economic constraints and its commitments to the International Monetary Fund (IMF).
He reiterated that deregulation remained the government’s long-term objective, as competition could improve services and reduce fuel prices. However, the current intervention was temporary, with the government able to return to deregulation within 30 days under the approved summary.
On refinery development, he said the government was working to increase domestic production and advance the long-awaited refinery upgrade policy.
Regarding liquefied petroleum gas (LPG), Malik said the prevailing price range of Rs600 to Rs700 was incorrect and that corrective measures would be announced within one or two days.
He also assured consumers that gas supply arrangements were in place for November, including availability during all three daily cooking periods. The government was simultaneously working on arrangements to ensure adequate supplies in December and January.