Petrol price linked to global refined fuel rates, not crude oil: Ali Pervaiz Malik

ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik has rejected criticism over the recent increase in petrol prices, saying the adjustment was driven by the rising cost of refined petrol in the international market following tensions in the Middle East.

Responding to comments by economist Dr Farrukh Saleem, the minister took to X stating that Pakistan’s petrol price was not determined on the basis of Saudi Aramco’s crude oil rates, but according to the international price of finished petrol.

“Pakistan’s petrol price is fixed according to the global price of refined petrol,” Malik said, adding that daily international rates of finished petrol were taken into account while determining domestic prices.

He said refined petrol had remained above $88 per barrel in the international market during the current week, compared with $76 per barrel on February 27, 2026, before the outbreak of war. This meant, he added, that refined petrol was still around $12 per barrel more expensive than its pre-war level.

The minister said Pakistan imported nearly 70 per cent of its petrol requirement, and that freight, insurance and other import-related costs were also added when fuel was brought from abroad.

“To understand petrol prices in Pakistan, it is important to look at the global price of finished petrol, not crude oil,” he said.

Malik also addressed concerns over taxation on petroleum products, saying the government was currently collecting Rs85 per litre on petrol through the petroleum levy and carbon support levy combined.

He said these levies were fixed per-litre charges collected by the government in line with international commitments. Before the war, on February 27, both levies together stood at Rs86.90 per litre, he said.

“The current levies have not increased compared with the pre-war period; they are almost Rs2 per litre lower,” the minister said.

He maintained that the pricing mechanism was clear and based on the average of daily global market rates. He said it was not possible to accurately assess Pakistan’s petrol price by looking at only one day’s rate or at crude oil prices alone.

“The government is not deliberately withholding any relief,” he said, adding that any decline in global refined petrol prices would be passed on to consumers in Pakistan.

Malik said the government remained committed to transferring the full benefit of lower international prices to the public whenever market conditions allowed.

He said public debate on petrol prices should take into account the correct international benchmark and Pakistan’s import needs. Ignoring these facts, he added, made it unfair to claim that the government was deliberately keeping petrol prices high.

The minister said any alternative policy could have caused greater harm to the economy and the public.

He also said Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir were making efforts for a permanent end to the war.