Refineries to absorb Rs15bn monthly burden to avert petrol price hike: minister

Pakistan’s refineries have agreed to take on an estimated Rs15 billion in costs each month, allowing the government to avoid a Rs15-per-litre petrol price increase scheduled for Friday, Petroleum Minister Ali Pervaiz Malik said Monday. Business Recorder reported that the arrangement would keep domestic petrol Rs15 per litre below the price implied by international markets.

Malik said refineries had raised throughput over the previous three months and were asked to help consumers as global oil prices climbed. He also said the refinery premium had been limited to $20 per barrel, compared with $5 before the crisis, and that upgrades and deregulation remained government aims, although immediate relief was the priority. Information Minister Attaullah Tarar said over 15 million people had registered for the fuel relief scheme, with about Rs27 billion allocated; the ministers also said there was no fuel shortage and November needs were covered.