Federal Minister for Petroleum, Musadik Masood Malik, stated that while Pakistanis will benefit from the recent decline in international petroleum prices, they will also face higher costs when prices rise. Malik made these remarks in response to questions during a session of the National Assembly, emphasizing the volatility of global oil markets.
Price Predictions and Market Trends
Malik explained that fluctuations in international oil prices lead to market speculation, making it difficult to predict petroleum prices for the upcoming fortnight. “Price predictions are challenging due to constant market shifts,” he said. The minister noted that Pakistan often receives support from Saudi Arabia through oil on deferred payments, which helps manage domestic oil prices.
Dollar-Rupee Parity and Domestic Pricing
Highlighting improvements since the current government took office, Malik pointed out that the dollar-rupee parity has stabilized. This stability, he explained, affects domestic petroleum pricing as the country purchases oil in dollars but sells it in rupees. The minister also noted that petrol prices have been reduced by Rs47 per litre since May and that there has been a gradual decrease in the smuggling of Iranian petrol.
Read: IMF to Approve Loan Program for Pakistan This Month
Gas Crisis and Connection Restrictions
Addressing concerns about gas supply, Malik warned that the country’s gas reservoirs are depleting, and granting additional connections could exacerbate the crisis. He defended the previous government’s decision to restrict new gas connections, stating that it was necessary to prevent further strain on gas supplies.
Legal Status of Smuggling and Future Price Changes
Malik declared that smuggling cannot be legalized, as it involves bringing goods into the country without paying taxes. However, he mentioned that if the National Assembly formally declares smuggling legitimate, the government would consider allowing it.
In light of the recent bearish trend in international oil markets, sources indicate that petrol prices might decrease by Rs12 per litre, while diesel and kerosene oil prices could fall by Rs12 and Rs8 per litre, respectively. The final prices will be determined based on oil market trends from September 12 to September 14.
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