The federal government has defended the recent increase in petrol and diesel prices amid growing public criticism, with Federal Minister for Petroleum Ali Pervaiz Malik saying the adjustment was driven by global market conditions rather than government policy.
Islamabad, Pakistan – Web Desk: Responding to comments by economist Dr Farrukh Saleem, the minister said petrol prices in Pakistan are determined by the international price of refined petroleum products, not crude oil. He explained that rising tensions in the Middle East pushed global refined petrol prices higher, leading to the latest increase in domestic fuel prices.
Ali Pervaiz Malik said Pakistan imports nearly 70% of its petrol requirements, making international refined fuel prices a key factor in local pricing. He noted that the average global price of refined petrol exceeded $88 per barrel this week, compared with $76 per barrel before the conflict on February 27, 2026. Import-related costs, including freight and insurance, also contribute to the final price.
The minister clarified that petrol prices are not linked to Saudi Aramco’s crude oil rates, but are based on the average daily international price of refined petrol. He added that the current Petroleum Levy and Carbon Support Levy total Rs85 per litre, which is nearly Rs2 lower than the combined levy before the conflict.
He said the fuel pricing mechanism is transparent and based on internationally accepted formulas, stressing that the government does not withhold relief when global prices decline. If international refined petrol prices fall, consumers in Pakistan will also benefit, he added.
Rejecting allegations that the government intentionally keeps fuel prices high, the petroleum minister said adopting an alternative pricing policy would have caused greater damage to the national economy and placed a heavier burden on the public.
