Petrol price hike averted as oil refineries bear Rs15/ litre burden: Malik

Petroleum Minister Ali Pervaiz Malik has said that petrol prices were scheduled to increase by Rs15 per litre on Friday, but on the Prime Minister's instructions, the additional burden was transferred to oil refineries.

Speaking at a press conference in Islamabad alongside Federal Information Minister Attaullah Tarar, Ali Pervaiz Malik said providing relief to the public remains the Prime Minister's top priority.

He said the government would hold a meeting with oil refineries the following day to discuss various matters. He added that refineries had earned substantial profits and thanked them for their cooperation in keeping petrol prices under control.

According to the petroleum minister, cooperation from local refineries enabled the government to provide petrol at Rs15 per litre less than the expected price.

He also claimed that the refineries' profits over three months had exceeded their earnings for the entire previous year.

Ali Pervaiz Malik said millions of people were benefiting from the government's fuel relief measures. He added that the government had previously agreed on a crude oil-based formula for diesel pricing in consultation with refineries.

He confirmed that the scheduled Rs15 per litre increase in petrol prices on Friday had been prevented, with refineries agreeing to absorb the additional financial burden, estimated at Rs15 billion.

The petroleum minister said the regional situation had created difficulties for consumers, while transportation and insurance costs for petroleum products had increased significantly.

He explained that recent developments had pushed up international petroleum prices. The premium on petroleum imports had increased from $5 to between $10 and $20 per barrel before and during the current crisis, he said.

Malik added that local refineries produce approximately 30 per cent of the country's petrol requirements.

He assured the public that the government would not treat anyone unfairly and would take steps to protect consumers from additional financial pressure.

Responding to a question about an attack on an LNG cargo ship bound for Pakistan in the Strait of Hormuz region, Malik clarified that the incident occurred before the vessel reached the Strait of Hormuz and not while crossing it.

He said fuel shipments should be allowed to reach their destinations on humanitarian grounds, regardless of their destination during the current difficult circumstances.

He added that investigations would determine the origin of the attack.

Federal Information Minister Attaullah Tarar said the Rs15 per litre petrol price increase was prevented on the Prime Minister's strict instructions.

He said the Prime Minister's vision from the outset had been to minimise the financial burden on the public.

Tarar maintained that Pakistan was not facing a fuel shortage and that available supplies were sufficient to meet domestic requirements.

He acknowledged that economies worldwide, including Pakistan's, were being affected by ongoing conflicts but said the country's key economic indicators remained positive despite challenging circumstances.

The information minister further announced that fuel relief for motorcyclists, rickshaw operators and small-car owners would continue.

He said the government had so far provided Rs27 billion in petrol-related relief under the existing scheme, which he described as a successful initiative.