International oil prices have declined and good news on fuel prices will be announced soon, according to Petroleum Minister Ali Pervaiz Malik.
The minister said the government will pass the benefit of falling global prices on to the public.
He also said Pakistan’s oil refineries will absorb around Rs. 15 billion a month to keep petrol about Rs. 15 per litre cheaper than international rates.
Malik was addressing a press conference in Islamabad alongside Information Minister Attaullah Tarar.
Refineries Take the Hit
He 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. The arrangement comes under the government’s new petrol pricing formula and runs for 30 days.
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.
Rs. 27 Billion Fuel Relief
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. He added that the country has no fuel shortage.
What This Means for You
Some relief has already arrived. Petrol fell by Rs. 3.40 to Rs. 374.51 per litre and diesel by Rs. 7.76 to Rs. 395.20 from November 3.
For a motorcyclist using 20 litres a month, the Rs. 15 hike the refineries absorbed would have cost Rs. 300 more every month. If global prices keep falling, further cuts could follow, though the refinery deal is only temporary after the government made refineries pay to keep prices unchanged.
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