Oil refineries to bear Rs15bn monthly burden to prevent petrol price hike

Pakistan’s refineries are expected to absorb a combined Rs15 billion each month to keep petrol prices Rs15 per litre below the level implied by international oil prices, Petroleum Minister Ali Pervaiz Malik said on Monday. The arrangement is intended to avert a price increase due on Friday, following consultations between Prime Minister Shehbaz Sharif and domestic refineries, Profit by Pakistan Today reported.

Malik said refineries had raised throughput over the past three months and agreed to support consumer relief. He also said the refinery premium had been capped at $20 per barrel, compared with $5 before the crisis. Information Minister Attaullah Tarar said more than 15 million people had registered for the government’s fuel relief scheme, with about Rs27 billion allocated. The ministers said November fuel needs were covered and ruled out an immediate shortage, while procurement for December and January remains to be decided.