Petroleum Minister Ali Pervaiz Malik has explained why fuel prices are rising across Pakistan.
In an exclusive interview with ARY News, Ali Pervaiz Malik linked the rise to global oil prices hike over the past two weeks.
The minister said that determining petroleum prices is not a straightforward process under the current circumstances, given the volatility in international oil markets.
He noted that petroleum dealers are also demanding an increase in their profit margin from the existing 8%, adding that the current petroleum levy remains lower than it was before the regional conflict.
“On one hand, global oil prices are witnessing significant volatility, and on the other, if petrol pumps also become a point of pressure, the situation will become even more difficult,” he said, adding that markets may be anticipating potential disruptions in fuel availability.
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Responding to a question, Ali Pervaiz Malik said Pakistan cannot make pricing decisions in isolation under the prevailing regional conditions. He added that petroleum prices are being reviewed on a daily basis and that the government is sharing pricing details transparently.
Speaking about the refinery policy, the minister said the government is encouraging domestic refineries to process imported crude oil to produce locally refined diesel, reducing reliance on imports.
He said an updated refinery policy has already been submitted, adding that refineries had previously operated under an IPP-style model until 2002. According to the minister, had these refineries not been operational, the country would have faced a far more severe crisis.
He further said that under a decision approved by the Prime Minister, the customs duty (DM duty) under the refinery policy will be reduced by 2.5% every six months.