Petrol price likely to be slashed by Rs12

Federal Minister for Petroleum, Musadik Masood Malik, stated that Pakistanis will benefit from the decline in international petroleum prices but will also bear the burden when prices rise.

Responding to a question in the National Assembly, the minister said that price fluctuations in the international market lead to speculation, making it too early to predict petroleum prices for the next fortnight.

"We often receive support from Saudi Arabia through oil on deferred payments," Malik noted, adding that domestic oil prices are determined by global market trends.

He highlighted, "We buy petroleum products against dollars and sell in rupees. Since the inception of the incumbent government, the dollar-rupee parity has stabilised.

The minister pointed out the petrol price was slashed by Rs47 per litre since May, adding there is a gradual decline in the smuggling of Iranian petrol. He said there are no criteria to regularise the smuggling, adding the country has 21-day strategic stock of petroleum products.

To a question, he said the country's gas reservoirs are depleting by the day. If additional connections are granted, it will lead to a severe gas crisis in the country. "You are not ready to pay the cost of imported gas," said Malik, adding the previous government imposed restriction on new gas connections, which was the right decision.

He said smuggling cannot be legalized, adding bringing things to the country without paying taxes is illegal. However, the minister said if the house declares smuggling as legitimate, the government will allow it.

Meanwhile, in view of bearish trend at the international market, the petrol price is likely to go down by Rs12 per litre.

The sources said, it is estimated that the diesel price will be slashed by Rs12 per litre and the kerosene oil price by Rs8 per litre.

The final price is likely to be determined on the basis of oil prices at the international market from September 12 to September 14, said the sources.