Ali Pervaiz Malik says petrol prices are linked to global refined fuel rates, not crude oil prices, amid rising international market costs.
Federal Minister for Petroleum Ali Pervaiz Malik has explained the reasons behind the recent petrol price hike in Pakistan, stating that local fuel prices are determined by international refined petroleum rates rather than crude oil prices.
The minister clarified that Pakistan’s petrol pricing mechanism is based on the global cost of finished petrol.
He emphasized that domestic petrol prices are not linked to crude oil rates quoted by companies such as Saudi Aramco but are calculated using international market prices of refined fuel products.
Ali Pervaiz Malik noted that recent geopolitical tensions and instability in the Middle East have significantly increased refined petrol prices worldwide.
According to him, the international price of ready-made petrol remained above $88 per barrel this week. In comparison, the same product was priced at around $76 per barrel on February 27, 2026, before the conflict escalated. This indicates an increase of approximately $12 per barrel in global refined fuel prices.
The minister highlighted that Pakistan imports nearly 70 percent of its petrol requirements. The import cost includes not only the fuel price but also freight charges, insurance expenses, and other associated costs.
He explained that the government determines local petrol prices using the average daily international prices of refined petrol, making the pricing process transparent and publicly verifiable.
Discussing taxes and levies, Malik stated that the petroleum levy and carbon support levy currently stand at a combined Rs85 per litre. He pointed out that before the Middle East conflict, the combined levy rate was Rs86.90 per litre, meaning the current burden on consumers is slightly lower than it was previously.
The petroleum minister reiterated that the government remains committed to passing on any relief to consumers whenever international refined petrol prices decline. He stressed that discussions about fuel prices should focus on refined petrol costs and Pakistan’s import realities rather than crude oil prices alone.
Malik also rejected suggestions that the government is intentionally keeping fuel prices high, arguing that alternative policy decisions could have created greater economic challenges.