Pakistan’s fuel prices linked to Singapore market, says petroleum minister

Minister for Petroleum Ali Pervaiz Malik has said that fuel prices in Pakistan are linked to the Singapore market for refined petroleum products rather than international crude oil prices.

The remarks came during a meeting of the Senate Standing Committee on Petroleum, where committee members were briefed by the Chairman of the Oil and Gas Regulatory Authority (OGRA).

During the meeting, the OGRA chairman said that petroleum prices in Pakistan are not determined solely by crude oil prices.

He added that announcing fuel prices on a weekly or fortnightly basis, instead of more frequent adjustments, could result in larger price fluctuations.

Speaking to the media separately, Ali Pervaiz Malik said the petroleum levy on petrol and diesel remains lower than the level imposed during the period when regional hostilities intensified.

The minister reiterated that Pakistan's petrol and diesel prices are linked to international prices of refined petroleum products, with the Singapore market serving as the benchmark for pricing.

He said fuel prices had declined for a few days but had begun rising again following the recent escalation in regional military activity.

Ali Pervaiz Malik also said Pakistan's leadership is making diplomatic efforts to support a lasting ceasefire between Iran and the United States. He added that if a ceasefire is achieved, petroleum prices are expected to ease.

However, he said that while Pakistan remains under the IMF programme, the government cannot broadly reduce fuel prices. If the conflict continues for several more days, the government will work with provincial authorities to reintroduce a targeted subsidy mechanism.