ISLAMABAD: The federal government has arranged Rs15 per litre relief on petrol through a Rs15 billion monthly cross-subsidy arrangement with local refineries, Petroleum Minister Ali Pervaiz Malik announced on Monday at a joint press conference with Information Minister Attaullah Tarar.
Addressing the media, the ministers said the government had already distributed Rs27 billion in relief to owners of small cars, motorcycles and rickshaws.
The petroleum minister thanked domestic refineries for absorbing an anticipated Rs15 per litre increase in petrol prices. He explained that the interim arrangement would keep domestic petrol prices around Rs15 per litre lower than international market rates, with local refineries absorbing a monthly burden of approximately Rs15 billion.
The ministry has scheduled a follow-up meeting with refinery representatives on Tuesday to further refine the mechanism.
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The relief initiative comes amid escalating regional conflict, which has severely disrupted global energy supply chains. Malik noted that petrol import premiums had surged from USD5 per barrel before the conflict to USD20 per barrel, while subsequent Pakistan State Oil (PSO) tenders had seen premiums rise to USD25-30 per barrel or higher due to soaring freight, insurance and logistics costs. Local production meets approximately 30 percent of Pakistan’s petrol demand, leaving the country dependent on imports for the remaining 70 percent, he said.
Information Minister Attaullah Tarar reassured the public that there was no fuel shortage in the country and that national reserves remained sufficient. Malik also dismissed rumours of an increase in LPG prices, rejecting claims that rates had reached Rs700 per kilogramme.
Regarding winter energy arrangements, Malik confirmed that gas supplies for domestic cooking hours were fully secured for November, while comprehensive supply plans for the peak winter months of December through February were being finalised.
Copyright Business Recorder, 2026