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Petroleum Minister Highlights Rs47.54 Drop in Fuel Prices Since May Amid Global Market Fluctuations
Petroleum prices in Pakistan have dropped by Rs47.54 per litre since May, with more reductions expected. Minister Musadik Malik explains how international fuel rates and rupee-dollar parity are impacting prices.
ND
by News Desk
2024-09-12
Petroleum Minister Highlights Rs47.54 Drop in Fuel Prices Since May Amid Global Market Fluctuations

Minister for Petroleum Division Musadik Masood Malik announced on Thursday that Pakistan has seen a notable Rs47.54 reduction per litre in petroleum prices since May, reflecting global market shifts and efforts to stabilize domestic fuel costs.

Speaking in the National Assembly, Malik said Pakistan continues to purchase fuel at international rates but benefits from discounts on premiums, particularly from Kuwait under an existing agreement for diesel imports.

"Sometimes, we also get relaxation in the payment period from friendly countries," he added, explaining that fuel prices in Pakistan are closely tied to international market trends and the dollar-rupee exchange rate.

Malik emphasized that since the current government took office, the Pakistani rupee has stabilized against the dollar, which has helped alleviate some pressure on fuel prices. He assured the assembly that any reduction in international fuel prices is passed on to the public.

The petroleum minister further highlighted that the government is actively working to bring more retailers and wholesalers into the tax net. "As the tax-to-GDP ratio increases, the petroleum levy will decrease," Malik noted, outlining plans to gradually minimize the burden of petroleum taxes on consumers.

Regarding fuel stock, Malik said that Pakistan maintains a 21-day supply of petrol and diesel to meet national demand.

Fourth Consecutive Price Cut Expected

In addition, there are expectations that fuel prices could further decline. According to sources, prices of petrol and high-speed diesel (HSD) in the international market have decreased by approximately $5 per barrel in the last two weeks. This could translate into a Rs10-11 per litre reduction in domestic prices starting September 15, marking the fourth consecutive price cut.

However, there is speculation that the government may increase the petroleum levy by Rs5 per litre to offset a revenue shortfall of Rs100 billion in the first two months of the fiscal year, potentially limiting the price drop to Rs5-6 per litre.

As Pakistan continues to adjust fuel prices based on international market conditions, the government’s focus remains on balancing public relief with revenue generation.
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PakistanEconomy

FuelPrices

PetroleumRelief
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