Islamabad: Federal Minister for Petroleum Ali Pervaiz Malik has dismissed criticism regarding the recent hike in petrol prices, explaining that the increase was driven by rising costs of refined petrol in the global market amid ongoing tensions in the Middle East.
In response to economist Dr Farrukh Saleem’s remarks, Malik emphasized that Pakistan’s petrol pricing is based on the international rates of finished petrol rather than Saudi Aramco’s crude oil prices. He highlighted that the domestic petrol price is determined by daily global prices of refined petrol.
Malik pointed out that refined petrol prices have remained above $88 per barrel this week, compared to $76 per barrel on February 27, 2026, before the outbreak of war. This indicates that refined petrol is approximately $12 per barrel costlier than its pre-conflict level.
The minister further explained that Pakistan imports nearly 70 percent of its petrol requirements, and additional expenses such as freight, insurance, and other import-related charges are factored into the final price of fuel brought into the country.
He stressed the importance of considering the global price of finished petrol rather than crude oil when analyzing petrol prices in Pakistan.
Addressing concerns about taxation, Malik stated that the government currently collects Rs85 per litre on petrol through combined petroleum and carbon support levies. He noted that before the war, on February 27, these levies totaled Rs86.90 per litre, meaning the current levies are nearly Rs2 per litre lower than pre-war levels.
The minister underscored that the pricing mechanism is transparent and based on the average of daily international market rates. He cautioned against evaluating Pakistan’s petrol price based on a single day’s rate or crude oil prices alone.
Malik assured that the government is not intentionally withholding any relief and that any decrease in global refined petrol prices will be passed on to consumers in Pakistan. He reaffirmed the government’s commitment to transferring the full benefit of lower international prices to the public whenever market conditions permit.
He urged that public discussions on petrol prices should consider the correct international benchmarks and Pakistan’s import dependency. Ignoring these factors, he said, leads to unfair accusations that the government is deliberately maintaining high petrol prices.
Malik warned that alternative policies could have inflicted greater damage on both the economy and the public. He also mentioned that Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir are actively working towards a permanent resolution to the ongoing war.
