Petrol price expected to drop by Rs12

Addressing a recent session of the National Assembly, Federal Minister for Petroleum, Musadik Masood Malik emphasised the dual nature of benefits and burdens that Pakistani citizens could experience in relation to the fluctuations in international petroleum prices. He said while a decline in prices might lead to financial relief for the consumers, rising prices would inevitably translate to increased costs.

He acknowledged the financial support Pakistan receives from Saudi Arabia through deferred oil payments, underscoring that domestic pricing is closely linked to global market dynamics. “We purchase petroleum products in dollars and sell them in rupees. Since this government took office, we have seen a stabilization in the dollar-rupee exchange rate,” he noted.

The minister highlighted the positive impacts of recent policy decisions, revealing that the petrol price has been reduced by Rs47 per litre since May. He also mentioned the gradual decline in the smuggling of Iranian petrol, reaffirming the government’s stance against legitimizing smuggling activities. “There are no criteria for regularizing smuggling; it is illegal to bring goods into the country without paying taxes,” he emphasised, though he suggested that a parliamentary consensus could lead to a shift in policy.

Malik also raised concerns about the nation’s depleting gas reservoirs, warning that granting additional gas connections could precipitate a significant crisis. “The previous government’s restrictions on new gas connections were a necessary measure,” he stated, adding, “You are not prepared to bear the costs of imported gas.”

Regarding future petrol prices, sources suggest a potential decrease of Rs12 per litre, with similar reductions anticipated for diesel and kerosene oil—estimating a reduction of Rs12 and Rs8 per litre, respectively. The final pricing will be contingent on oil prices observed in the international market from September 12 to September 14.

This comprehensive approach highlights the interconnectedness of global oil markets and domestic economic policies, as well as the Pakistani government’s efforts to navigate these volatile trends for the benefit of its citizens.