Pakistan's petroleum prices lower than regional countries, says minister

• Committee's next meeting will be its final: Ali Pervaiz Malik.
• Malik says committee to submit recommendations to PM.
• Fuel rates broadly comparable to prices in India: minister.
  

Petroleum Minister Ali Pervaiz Malik on Monday justified the existing petrol prices, saying fuel rates in Pakistan were still lower than those in some regional countries.

Malik made the remarks while chairing the fourth meeting of a committee constituted by Prime Minister Shehbaz Sharif to review the petroleum pricing mechanism.

Petrol is currently being sold at Rs310.71 per litre, while high-speed diesel (HSD) is priced at Rs323.30 per litre after the government increased rates by Rs13.18 and Rs13.8, respectively, on July 10.

During today's meeting, the petroleum minister said that the committee's work had assumed greater significance in light of the renewed closure of the Strait of Hormuz and the resulting uncertainty in global energy markets.

US President Donald Trump said earlier today that Washington was reinstating a naval blockade on Iran and would charge a 20% fee on cargo transiting the Strait of Hormuz after Tehran announced the closure of the vital shipping route.

Global oil prices rose more than 4% after Trump's statement reignited concerns over energy shipments through the Strait of Hormuz.

Brent crude futures were up $3.21, or 4.22%, to $79.22 at 11:04am EDT (1534 GMT), while US West Texas Intermediate crude was up $3.04, or 4.26%, to $74.45 a barrel.

Meanwhile, Malik, citing a study, said that petrol prices in Pakistan remained lower than those in Bangladesh, Sri Lanka, and Turkiye, while being broadly comparable to prices in India.

The minister said the government had proposed amendments to the refinery policy to increase domestic diesel production and reduce reliance on imported diesel, thereby strengthening the country's energy security.

The committee reviewed international best practices and prevailing market conditions as part of its assessment of Pakistan's petroleum pricing framework.

The committee reviewed various options for improving the petroleum pricing mechanism.

As an immediate step, it recommended that the Oil and Gas Regulatory Authority (Ogra) publish daily Platts pricing data on its website to provide the public with access to the benchmark used for petroleum pricing in the country.

The committee also agreed that the recently established Petroleum Price Stabilisation Fund should operate under a fully rules-based framework, with clearly defined mechanisms for funding and disbursements to ensure transparency and prevent arbitrary decision-making.

Members also emphasised the need to digitise the oil supply chain.

Chairing the meeting, Malik directed that the committee's next meeting would be its final session, after which its recommendations would be submitted to the prime minister for consideration.

Economic Affairs Minister Ahad Khan Cheema, Minister of State for Finance Bilal Azhar Kayani, Ogra Chairman Nabeel Awan, representatives of KPMG, officials from the Finance Division, Ogra, Pakistan State Oil (PSO), law ministry, and Petroleum Division participated in the meeting.