The government has secured the support of local oil refineries to shield consumers from rising international fuel prices, preventing a proposed increase of Rs15 per litre in petrol prices that was due to take effect on Friday.
The announcement was made at a press conference in Islamabad attended by Petroleum Minister Ali Pervaiz Malik and Information Minister Attaullah Tarar.
Addressing the media, Malik said Prime Minister Shehbaz Sharif had held consultations with oil refineries to explore measures that would keep fuel prices affordable amid expectations of a sharp increase in petroleum prices.
He said the prime minister had engaged with refinery representatives to seek their cooperation in reducing the burden on consumers, particularly as international oil prices continued to rise.
Malik expressed gratitude to the refineries for increasing their production capacity, adding that they had also benefited financially from higher throughput over the past three months.
He said the government had requested the refineries to extend support during the current economic difficulties, and their cooperation had helped prevent the proposed Rs15 per litre increase in petrol prices.
The petroleum minister said the arrangement would provide further relief to consumers, adding that the refineries had agreed to absorb an estimated financial burden of around Rs15 billion per month.
As a result, petrol would remain available at a price approximately Rs15 per litre lower than the rate implied by international market prices.
Malik expressed hope that the ongoing Middle East crisis would move towards a peaceful resolution, allowing the government to resume its plans for improving the energy sector, including deregulation and upgrading domestic refineries.
He said the government did not intend to impose an excessive burden on any stakeholder and would continue making decisions through consultation, with public interest and fairness as key considerations.
The minister also said the premium charged by refineries had stood at $5 per barrel before the crisis, while a limit of $20 per barrel had now been established. He added that the government would intervene if further difficulties emerged to protect consumers from additional price pressures.
Information Minister Attaullah Tarar said the prime minister’s priority from the outset had been to minimise the impact of the international crisis on Pakistan’s economy and its citizens.
He acknowledged that the situation in the Middle East had affected economies worldwide, including Pakistan, but said the country’s major economic indicators had remained largely stable compared with those of several other countries.
Referring to the expected petrol price increase on Friday, Tarar said the prime minister had directed oil refineries to absorb the additional cost to prevent consumers from facing a Rs15 per litre increase.
He described the refineries’ cooperation as an important step towards providing relief to the public during a difficult period.
Tarar also highlighted the government’s fuel subsidy programme, which provides targeted assistance to motorcycle and small-car owners.
Under the scheme, registered motorcycle users receive a weekly petrol subsidy of Rs500, while owners of cars with engines up to 800cc can purchase 10 litres of petrol every 10 days at a discount of Rs100 per litre.
The information minister praised the prime minister’s commitment to implementing the programme, saying its introduction had required significant administrative efforts.
He said the number of unique users registered under the scheme had exceeded 15 million, while approximately Rs27 billion had so far been allocated for the relief initiative.
Tarar described the subsidy programme, along with the decision to prevent the latest petrol price increase, as significant measures aimed at reducing the financial pressure on consumers.
