By In a recent session of the National Assembly, the Minister for Petroleum Division, Dr. Musadik Masood Malik, provided an important update on the state of petroleum prices in Pakistan. According to the minister, petroleum prices have decreased by Rs 47.54 per litre since May, offering relief to consumers across the country.
International Market Influence
Dr. Musadik explained that Pakistan purchases fuel at international market rates, but the country benefits from discounts on the premium. He mentioned that under a specific agreement, Pakistan is buying diesel from Kuwait at international rates with discounted premiums. Additionally, Pakistan occasionally enjoys extended payment periods from friendly countries, providing further financial relief.
Impact of Dollar-Rupee Parity
The minister emphasized that fuel prices in Pakistan are directly tied to both international market fluctuations and the dollar-rupee exchange rate. Since the current government took office, the Pakistani rupee has stabilized against the dollar, which has contributed to more consistent fuel prices.
Dr. Musadik assured that whenever fuel prices drop in the international market, the savings are passed on to the public.
Efforts to Reduce Petroleum Levy
In response to questions, the minister outlined the government’s ongoing efforts to bring retailers and wholesalers into the tax net. This initiative aims to gradually reduce the petroleum levy, which is tied to the country’s tax-to-GDP ratio. As tax collection improves, the burden of the petroleum levy on consumers is expected to decrease.
Stock Policy for Fuel Reserves
Addressing a question about fuel reserves, Dr. Musadik stated that Pakistan maintains a stock of petrol and diesel sufficient to meet the country’s 21-day demand, ensuring a steady supply.
The Rs 47.54 per litre reduction in petroleum prices since May highlights the government’s efforts to stabilize fuel costs in line with international market trends and favorable currency exchange rates. The move is expected to offer some economic relief to consumers while the government continues to focus on increasing the tax base and reducing the petroleum levy in the long term.
