Petroleum Minister Ali Pervaiz Malik on Monday justified government-set petrol prices in Pakistan, maintaining the rates remain lower than those of some regional countries.
Chairing the fourth meeting of a committee constituted by Prime Minister Shehbaz Sharif to review the petroleum pricing mechanism, he said the committee’s work had assumed greater significance amidst the renewed closure of the Strait of Hormuz and the resulting uncertainty in global energy markets.
Last week, the government set the price of petrol at Rs. 310.71/liter, and high-speed diesel at Rs. 323.30/liter, raising rates by Rs. 13.18 and Rs. 13.8/liter, respectively. The hike followed escalation in hostilities between Iran and the United States, with President Donald Trump this week announcing a new U.S. blockade of the Strait and the imposition of a 20% fee on cargo transiting it.
Citing a study, Malik claimed petrol prices in Pakistan remained lower than rates in Bangladesh, Sri Lanka, and Turkiye, while being broadly comparable to India. He said the government had proposed amendments to the refinery policy to increase domestic diesel production and reduce reliance on imported diesel, thereby strengthening the country’s energy security.
The committee reviewed international best practices and prevailing market conditions as part of its assessment of Pakistan’s petroleum pricing framework, as well as various options for improving the petroleum pricing mechanism.
As an immediate step, the committee recommended that the Oil and Gas Regulatory Authority (OGRA) publish daily Platts pricing data on its website to provide the public with access to the benchmark used for petroleum pricing in the country. It also agreed that the recently established Petroleum Price Stabilization Fund should operate under a fully rules-based framework, with clearly defined mechanisms for funding and disbursements to ensure transparency and prevent arbitrary decision-making.
Members also emphasized the need to digitize the oil supply chain.
During the meeting, Malik said the committee’s next meeting would be its final, adding its recommendations would then be submitted to the prime minister for consideration.