ISLAMABAD: Pakistan has prevented a planned Rs15-per-litre increase in petrol prices, with the cost being absorbed by oil refineries following the prime minister’s instructions, Petroleum Minister Ali Pervaiz Malik said.
Speaking at a press conference in Islamabad alongside Information Minister Attaullah Tarar, Malik said the government had agreed with refineries to keep petrol prices lower for consumers. He said refineries would bear a total cost of Rs15 billion and thanked them for their cooperation. According to the minister, refineries had recorded substantial profits in recent months.
Malik said international price increases, higher shipping and insurance costs, and regional tensions had raised the cost of petroleum products. He added that the petrol premium had climbed from about $5 to as much as $20 per barrel. Local refineries produce around 30 per cent of Pakistan’s petrol supply.
The minister said the government would discuss the details with refineries at a meeting the following day. He also said authorities were taking action over reports that consumers were being charged excessive prices for gas.
Commenting on reports of an attack on an LNG vessel bound for Pakistan, Malik said the incident occurred before the ship reached the Strait of Hormuz and not while it was crossing the strait. He said an investigation would determine where the attack originated and called for fuel shipments to be allowed through on humanitarian grounds.
Tarar said the fuel-relief programme for motorcyclists, rickshaw users and owners of small cars would continue. He said the government had so far provided Rs27 billion in petrol relief and that there was no fuel shortage in the country.
Separately, the federal cabinet has approved a revised formula for setting refinery prices, according to the Petroleum Division. Under the new mechanism, the difference between the import price and the set refinery price will be deposited in the national treasury and passed on to consumers through a reduction in petrol prices.
For the next 30 days, refineries have been instructed to keep the premium, other costs and customs duty used in calculating petrol prices at their March 7, 2026 levels. The government says this will help ensure that any financial benefit is returned to consumers.
