Islamabad (Pakistan News Online) Federal Minister for Petroleum Ali Pervaiz Malik has announced that the Oil and Gas Regulatory Authority (OGRA) will determine petroleum product prices on a daily basis.
Addressing a press conference in Islamabad alongside Federal Minister for Information and Broadcasting Attaullah Tarar, Ali Pervaiz Malik said petroleum prices were once again rising in the international market, particularly diesel prices.
He said the international price of diesel had risen from around $110 to nearly $140 per barrel, while petrol prices had increased from $89 to approximately $100 per barrel.
The petroleum minister thanked the public for bearing the impact of rising fuel prices and said the government had provided around Rs130 billion in subsidies. He added that targeted subsidies were still continuing.
Ali Pervaiz Malik said any reduction in petroleum prices would be passed on to consumers, while strict action would be taken against profiteering and artificial shortages in the oil sector.
He said the seven-day average international price would now serve as the benchmark for daily petrol and diesel prices, while OGRA would determine prices every day.
The minister said no additional burden had been imposed on the public and that the government was gradually moving the petroleum sector towards a deregulated system. He added that the prime minister had formed a high-level committee, under his leadership, to introduce reforms in the sector.
According to Ali Pervaiz Malik, steps are also being taken to increase domestic oil and gas exploration. He said a Turkish petroleum company would bring its vessel to Pakistan in October, after 20 years, to explore for oil and gas in offshore areas.
He said work was also underway with international financial institutions on the issue of circular debt, while measures were being taken to modernize refineries and ensure the supply of petroleum products to consumers at globally competitive prices.
The petroleum minister also praised the services of Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, saying history would remember them in golden words.
Speaking on the occasion, Federal Minister for Information Attaullah Tarar said the increase in oil prices was linked to the ongoing global tensions. He said Pakistan was continuing its efforts to reduce tensions and that Prime Minister Shehbaz Sharif’s efforts were being recognized by the international community.
He said that when tensions were at their peak, fears of a global oil shortage had emerged. However, Pakistan took timely measures and imported cargo from various countries to meet its energy needs and prevent an oil shortage in the country.
The information minister said it was the responsibility of governments to ensure an uninterrupted supply of petroleum products. Despite rising global prices, he said, the federal government provided subsidies by reducing development expenditure.
Attaullah Tarar said prices in many countries are adjusted immediately in response to global market changes, which was why the government had decided to review petroleum prices on a daily basis to bring greater transparency to the system.
He clarified that no increase had been made in the petroleum levy, adding that special efforts had been made to reduce it.
The information minister said Pakistan would have to shift towards electric vehicles and electric motorcycles, with both the public and private sectors playing their role in promoting them.
He said strict action was being taken against hoarders and those exploiting crises for profit. He added that oil marketing companies were being monitored, while doing business and earning profits remained the right of every business entity.
Attaullah Tarar said the government’s priority was to provide maximum relief to the public, adding that significant savings had been achieved through austerity measures.