Fuel Prices in Pakistan Depend on Global Trends, Says Petroleum Minister

After the recent fall in crude oil prices in the global market, the discussion on possible relief in the prices of petroleum products has intensified in Pakistan as well. Federal Minister for Petroleum Ali Pervez Malik says that the government is continuously reviewing the situation in the global market, and if the trend of price reduction continues, the public will be benefitted at the local level accordingly.

Talking to the media in Lahore, the federal minister clarified that the prices of petroleum products in Pakistan are directly affected by the global market, import costs, rupee value, taxes and other financial factors. Therefore, only a reduction in prices at the global level is not enough, but the final decision is taken after looking at the overall economic situation.

He said that during the previous price review, the government provided more relief to the people than the reduction recorded in the global market. According to him, Prime Minister Shehbaz Sharif had directed that wherever possible, the benefit should be transferred to the people immediately so that the inflationary pressure could be reduced.

Ali Pervaiz Malik also rejected the impression that the government is not passing on the benefit of the reduction in global prices to the people. He said that some quarters create a wrong impression based on incomplete information, although many economic factors are involved in determining prices and the government adopts a transparent procedure in every decision.

The federal minister also discussed the possibility of obtaining cheap oil and gas from Iran. According to him, Pakistan is examining various alternative sources to meet its energy needs. However, he clarified that international agreements, diplomatic obligations and the regional situation will be taken into account before any possible step is taken.

He said that in recent days, the reduction in tensions between Iran and the US and the ceasefire have also brought relative stability to the global energy market, due to which crude oil prices have decreased. If this trend continues, the prospects of a reduction in the import bill and relief in local prices may be further strengthened.

According to experts, Pakistan meets most of its oil needs through imports, so changes in global prices also have an impact on the local market. However, this impact is not immediate because there is a regular price determination system under which several elements, including average import cost, freight, levy, sales tax and the value of the rupee, are reviewed.

The federal minister said that the government is also working on sustainable reforms in the energy sector so that import costs can be reduced in the future and the country can get more competitive energy sources. According to him, providing relief to the people is among the priorities of the government, but at the same time it is also necessary to maintain fiscal discipline.

At the end of his speech, Ali Pervaiz Malik described the law and order situation during the first decade of Muharram as satisfactory, appreciated the efforts of the Pakistan Army, law enforcement agencies, the federal government and the Punjab government, and expressed hope that through this cooperation, peace and stability would be maintained in the country.