ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik has said that the prices of petroleum products in Pakistan are linked to the Singapore fuel market rather than international crude oil prices.
His remarks came after a meeting of the Senate Standing Committee on Petroleum, where committee members were briefed by officials, including the Chairman of the Oil and Gas Regulatory Authority (OGRA).
During the meeting, the OGRA chairman explained that petroleum prices in Pakistan are not determined solely on the basis of international crude oil prices. Instead, the pricing mechanism is based on refined petroleum product prices in international markets.
He added that if fuel prices were revised on a weekly or fortnightly basis instead of the current schedule, the recent increase in prices could have been even higher.
Speaking to the media later, Petroleum Minister Ali Pervaiz Malik said the petroleum levy on petrol and diesel remains lower than the level imposed during the period when regional conflict intensified.
The minister reiterated that the prices of petrol and diesel in Pakistan are linked to the international market prices of refined fuel products rather than crude oil.
He explained that Pakistan follows fuel price benchmarks based on the Singapore market, where prices of refined petroleum products are widely used as a regional reference.
According to the minister, international fuel prices had shown some decline for two to three days but had begun rising again following renewed military activity in the region.
Ali Pervaiz Malik said that a lasting ceasefire would be necessary for international fuel prices to decline sustainably. Otherwise, he noted, the government may have to consider targeted subsidies to protect consumers from the impact of higher fuel prices.
The minister’s remarks came amid continued volatility in global energy markets, where geopolitical developments have contributed to fluctuations in the prices of refined petroleum products.
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