ISLAMABAD (Kashmir English): Petroleum Minister Ali Pervaiz Malik on Monday said the government’s new petrol pricing formula could provide relief of up to Rs15 per litre to consumers, following consultations with oil refineries.
Speaking at a press conference alongside Federal Information Minister Atta Tarar in Islamabad, Malik said the government would discuss the matter with oil refineries in a meeting scheduled for the following day.
He said Prime Minister Shehbaz Sharif had made providing relief to the public a priority, adding that cooperation from refineries could help reduce petrol prices by up to Rs15 per litre.
Malik added that the situation in the region has caused an increase in the cost of delivery and insurance of petroleum products.
Malik said rising regional tensions had increased the cost of transporting and insuring petroleum products, while the premium on imported petroleum had risen from $5 to $20 per barrel compared with pre-war levels.
He said the government had managed to prevent a proposed Rs15 per litre increase in petrol prices on Friday, with refineries agreeing to bear a financial burden of around Rs15 billion to help keep prices under control.
The petroleum minister said a crude oil-based pricing formula had been agreed upon for diesel in consultation with refineries, while local refineries produced around 30 per cent of the country’s petrol requirements.
Responding to a question about an attack on an LNG vessel carrying fuel to Pakistan in the Strait of Hormuz, Malik said the reported incident had taken place before the vessel crossed the strait. He added that an investigation would establish the circumstances surrounding the attack.
‘Fuel relief will continue’
Meanwhile, Information Minister Atta Tarar said fuel relief for motorcycle and rickshaw owners and small vehicle users would continue on the prime minister’s instructions.
He said the government had so far provided Rs27 billion in petrol relief and maintained that Pakistan had no shortage of fuel, with national requirements being met.
Tarar added that the government was also pursuing diplomatic efforts for regional peace, saying an improvement in the situation could help stabilise fuel prices.
