Petroleum Minister Ali Pervaiz Malik says refineries will bear an estimated Rs15 billion monthly burden to protect consumers from rising international fuel prices amid the US-Israeli war on Iran.
ISLAMABAD, PAKISTAN — WEB DESK: Federal government has enlisted local oil refineries to help protect consumers from rising international petroleum prices, with refineries expected to bear an estimated financial burden of Rs15 billion per month.
Petroleum Minister Ali Pervaiz Malik announced the arrangement on Monday alongside Information Minister Attaullah Tarar during a press conference in Islamabad.
Malik said the cooperation would allow petrol to remain Rs15 per litre cheaper than its international market-linked price, helping prevent an expected increase in domestic fuel prices amid the US-Israeli war on Iran.
Refineries to absorb Rs15 billion monthly burden
The petroleum minister said Prime Minister Shehbaz Sharif had engaged with oil refineries to discuss measures to protect consumers from steep increases in fuel prices.
According to Malik, the refineries agreed to support the government after consultations, recognising the financial difficulties faced by the public.
He said refineries had increased their throughput and generated profits during the preceding three months.
The minister added that their cooperation helped the government avoid an expected Rs15 per litre increase in petrol prices announced for Friday.
Under the arrangement, refineries will collectively bear an estimated burden of approximately Rs15 billion every month.
Government sets limits on refinery premiums
Malik also explained that the government had taken measures concerning the premiums charged by oil refineries.
He said refinery premiums stood at $5 per barrel before the regional crisis, while a $20 limit had now been established.
The minister added that the government would intervene again if further difficulties emerged in the international energy market.
He expressed hope that the Middle East crisis would move towards a peace agreement, allowing the government to continue its plans for petroleum sector reforms, deregulation and refinery upgrades.
Government pledges further relief for consumers
The petroleum minister said the government wanted to protect consumers while ensuring that decisions affecting the petroleum industry were taken through consultation and fairness.
He thanked the refineries for cooperating with the government during a period of rising international oil procurement costs.
The government has been facing pressure to manage domestic fuel prices as disruptions linked to the Middle East conflict affect global energy markets.
The latest arrangement is intended to reduce the immediate impact of international price increases on Pakistani consumers.
