Pakistan’s Petrol Prices Lower Than Several Regional Countries, Says Petroleum Minister
ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik has said that petrol prices in Pakistan remain lower than those in several regional countries, including Bangladesh, Sri Lanka, and Turkiye, while being broadly comparable to fuel prices in India.
The minister made the remarks during a meeting of a government committee established by the prime minister to review reforms in Pakistan’s petroleum pricing mechanism.
Committee Reviews Petroleum Pricing System
According to an official statement, the committee examined various approaches to determining petroleum prices while taking international market trends into account.
Ali Pervaiz Malik said a study by KPMG indicated that Pakistan’s petrol prices are comparatively lower than those in Bangladesh, Sri Lanka, and Turkiye, while remaining close to prices in neighboring India.
Government Proposes Refinery Policy Changes
The petroleum minister said the government has proposed amendments to the country’s Refinery Policy to encourage higher domestic diesel production.
He explained that increasing local refining capacity would help reduce reliance on imported diesel and strengthen Pakistan’s long-term energy security.
Greater Transparency in Fuel Pricing
During the meeting, the committee also recommended improving transparency in the fuel pricing process.
One proposal suggests that the Oil and Gas Regulatory Authority (OGRA) publish daily Platts benchmark pricing on its official website, allowing the public to better understand the international reference prices used to determine domestic fuel rates.
Latest Petrol and Diesel Prices
The government recently revised petroleum prices, increasing:
- Petrol by Rs. 13.18 per litre to Rs. 310.71 per litre
- High-Speed Diesel (HSD) by Rs. 13.80 per litre to Rs. 323.30 per litre
The latest adjustment reflects changes in international oil market conditions and the government’s pricing formula.
Fuel Prices Rose Earlier This Year
Fuel prices experienced significant increases earlier in the year amid volatility in global energy markets.
During that period, diesel and petrol prices rose sharply before gradually stabilizing as international market conditions improved.
Taxes and Levies on Petroleum Products
The government currently applies several taxes and charges to petroleum products, including the petroleum levy, customs duty, climate support levy, and the Inland Freight Equalisation Margin (IFEM).
Following recent policy changes, the climate support levy was increased to Rs. 5 per litre from July 1, while adjustments were made to the petroleum levy in line with broader fiscal reforms.
Different petroleum products, including petrol, high-speed diesel, kerosene, and light diesel oil, are subject to varying tax and levy structures under the current pricing framework.
Focus on Long-Term Energy Reforms
The government says it is continuing efforts to improve transparency in fuel pricing, strengthen domestic refining capacity, and enhance Pakistan’s overall energy security through policy reforms.
Officials believe these measures will help create a more sustainable and efficient petroleum sector while ensuring consumers have greater access to information about fuel pricing.
