Islamabad, September 13, 2024 — Pakistan’s petroleum prices have seen a notable decrease of Rs 47.54 per litre since May, Petroleum Minister Musadik Masood Malik announced in a session of the National Assembly. This reduction reflects the government’s commitment to passing on international market benefits to consumers.
Minister Malik detailed that Pakistan’s procurement of fuel is aligned with international market rates, though the country occasionally secures discounts on premium rates from its suppliers. Notably, under a current agreement, Pakistan purchases diesel from Kuwait at international rates with an associated discount. Additionally, the country benefits from relaxed payment periods for fuel costs from its friendly nations.
Malik emphasized that fuel prices are influenced by global market trends and the exchange rate between the Pakistani rupee and the US dollar. He noted that since the new administration took office, the Pakistani rupee has shown increased stability against the dollar, contributing to the reduction in domestic fuel prices.
“The advantage of falling international fuel prices is consistently passed on to the Pakistani people,” Malik stated. He also highlighted ongoing government efforts to gradually incorporate both retailers and wholesalers into the tax system, aiming to minimize the petroleum levy. Increasing the tax-to-GDP ratio will play a crucial role in reducing the levy, he explained.
In response to inquiries about fuel stockpiling, the minister assured that the country maintains a strategic reserve of petrol and diesel to meet a 21-day requirement, ensuring consistent supply even in times of market fluctuations.
The government’s proactive approach in managing fuel procurement and taxation aims to stabilize prices and support economic resilience amid global market changes.
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