Govt arranges Rs15 per litre relief on petrol

Federal authorities in Pakistan have introduced a Rs15 per litre subsidy on petrol through a Rs15 billion monthly cross-subsidy agreement with local refineries, according to Petroleum Minister Ali Pervaiz Malik. The announcement was made on Monday during a press conference alongside Information Minister Attaullah Tarar. The subsidy aims to keep domestic petrol prices around Rs15 per litre lower than the international rates, as local refineries absorb a monthly cost of approximately Rs15 billion to offset anticipated price hikes.

Malik highlighted that the global energy supply chain was severely impacted by the recent regional conflict, which caused petrol import premiums to rise from USD5 per barrel to USD20 per barrel. Local producers currently meet approximately 30 percent of Pakistan's petrol demand, making the country reliant on imports for the remaining 70 percent.

He also assured the public that there was no fuel shortage in the country and that national reserves were adequate. Tarar further clarified that there were no plans to increase LPG prices and that gas supplies for domestic cooking were fully secured for November. The ministry is currently finalizing comprehensive supply plans for the peak winter months of December through February.