Pakistan sees Rs47.54 per litre drop in fuel prices since May, reports petroleum minister

Petroleum Minister Musadik Masood Malik informed the National Assembly on Thursday that petroleum prices in Pakistan had decreased by Rs 47.54 per litre since May.

In response to various questions, the minister explained, “Pakistan purchases fuel at international market rates, but we receive some discounts on the premium.”

He elaborated, “Under an agreement, we purchase diesel from Kuwait at international rates with a discount on the premium. Additionally, sometimes we receive relaxation in the payment period for fuel costs from friendly countries.”

Malik noted that fuel prices are directly linked to international market fluctuations and the dollar-rupee exchange rate. He highlighted that since the current government took office, the Pakistani rupee has stabilised against the dollar.

The minister assured that any reductions in international fuel prices are always passed on to the public. He also mentioned that the government is working to gradually bring retailers and wholesalers into the tax net, which would help reduce the petroleum levy. 

With an increased tax-to-GDP ratio, the rate of the petroleum levy would decrease accordingly, he added.

Malik further stated that the country maintains a stock of petrol and diesel sufficient to meet 21 days’ worth of requirements as per policy.