Govt Secures Rs 15 Per Litre Petrol Relief as Refineries Agree to Bear Rs 15 Billion Monthly Cost

• Pakistan’s oil refineries have agreed to absorb approximately Rs15 billion per month to prevent a Rs15 per litre increase in petrol prices.
• The government says Rs27 billion in fuel relief has already been distributed to motorcycle, rickshaw and small car owners.
• Authorities have assured the public that fuel reserves are sufficient, while gas supplies for domestic cooking hours have been secured for November.

The federal government has secured an arrangement with domestic oil refineries to provide Rs15 per litre relief on petrol, preventing an anticipated price increase amid rising international oil costs and disruptions to global energy supplies.

Federal Minister for Petroleum Ali Pervaiz Malik announced the decision during a joint press conference with Information Minister Attaullah Tarar on Monday, saying local refineries had agreed to absorb an estimated Rs15 billion in additional monthly costs to protect consumers from the full impact of higher international prices.

Under the temporary arrangement, petrol prices in Pakistan will remain approximately Rs15 per litre below the levels that would otherwise apply based on prevailing international market conditions.

The petroleum minister expressed appreciation for the cooperation of domestic refineries, acknowledging their willingness to shoulder the financial burden at a time when the country’s energy sector is facing growing pressure from international developments.

He said the Ministry of Petroleum had scheduled another meeting with refinery representatives for Tuesday to discuss the arrangement further and finalise details of its implementation.

The decision comes as escalating conflict in the Middle East continues to disrupt international energy markets, increasing the cost of importing petroleum products through higher freight charges, insurance premiums and other logistical expenses.

Explaining the impact on Pakistan, Malik revealed that petrol import premiums had increased sharply since the beginning of the regional conflict. Before the crisis, the premium stood at approximately $5 per barrel, but it subsequently climbed to $20 per barrel.

He added that more recent tenders issued by Pakistan State Oil (PSO) had attracted even higher premiums, ranging between $25 and $30 per barrel or more, reflecting increased transportation and supply-related risks.

The minister highlighted Pakistan’s dependence on imported petroleum products, noting that domestic refineries currently meet only around 30 percent of the country’s petrol requirements. The remaining 70 percent is fulfilled through imports, leaving local prices particularly vulnerable to fluctuations in international energy markets.

Meanwhile, Information Minister Attaullah Tarar said the government had already distributed approximately Rs27 billion under its fuel relief programme, targeting owners of motorcycles, rickshaws and small cars.

The initiative is intended to reduce transportation expenses for households and individuals who rely on smaller vehicles for daily commuting and earning their livelihoods.

Addressing concerns over the availability of petroleum products, Tarar assured citizens that Pakistan was not facing a fuel shortage and that the country maintained sufficient reserves to meet its requirements.

The petroleum minister also rejected reports suggesting that liquefied petroleum gas (LPG) prices had increased to Rs700 per kilogramme, describing the claims as inaccurate.

Discussing preparations for the approaching winter season, Malik confirmed that gas supplies required for domestic cooking hours had been fully secured for November.

He further stated that the government was working on comprehensive gas supply arrangements for December, January and February, when colder temperatures typically lead to a substantial increase in household energy demand.