Refineries to absorb Rs15bn monthly burden to avert petrol price hike: minister

Pakistan's oil refineries will shoulder an estimated Rs15 billion monthly burden to prevent a significant petrol price increase, according to Petroleum Minister Ali Pervaiz Malik. The announcement came during a press conference in Islamabad, where Malik addressed concerns about the impact of rising international oil prices on domestic petrol prices.

Speaking alongside Information Minister Attaullah Tarar, Malik expressed gratitude to refineries for bearing the additional load to shield consumers from the impact of global fuel price hikes. He highlighted that refineries had increased their throughput over the past three months, benefiting from the support provided by the government.

The refineries were requested to help consumers during the difficult period and agreed to absorb the Rs15 per litre increase in petrol prices that was initially set to take effect on Friday. As a result of this step, refineries would absorb approximately Rs15 billion a month, allowing petrol to be sold at a Rs15 per litre discount compared to the international market price.

Malik emphasized that the government would continue to intervene to protect consumers if the situation worsened, while expressing hope for a peaceful resolution to the Middle East crisis. He reiterated the government's commitment to deregulation and refinery upgrades, but stressed that public relief was the immediate priority amid the current crisis.

Tarar also mentioned that over 15 million unique users had registered for the government's fuel relief scheme, with around Rs27 billion allocated so far, as Pakistan's macroeconomic indicators remained largely stable despite the global economic impact. The ministers ruled out any fuel shortage, stating that domestic requirements were being met despite the challenging market conditions.

They also assured that the country's fuel supply requirements for November had been fully covered, with decisions regarding supplies for December and January to be made in due course. The prime minister had instructed relevant authorities to ensure uninterrupted supplies during the winter months. Additionally, the government has reintroduced austerity measures, including the closure of markets by 9pm and reducing fuel allocations for official vehicles by 50% for three months, in response to rising fuel prices.