Govt Defends Rs. 55 per Litre Increase in Petrol Price, Says it Prevented Shortage

The government has defended the recent increase of Rs. 55 per litre in petroleum prices, telling the Senate Standing Committee on Finance that the move was necessary to prevent fuel shortages and disruptions in the supply chain.

Petroleum Minister Ali Pervaiz Malik said on Thursday the decision was taken after consultations within the government as global oil prices surged and logistical challenges intensified due to regional tensions.

According to the minister, fuel imported earlier at around $70 per barrel may now cost up to $120 per barrel due to high import costs.

He warned that if the government had not adjusted domestic prices, oil marketing companies might have halted imports due to rising costs, potentially leading to severe shortages.

Malik said oil shipments to Pakistan currently take around 20 days, making it essential to ensure that companies remain financially capable of continuing imports.

Opposition lawmakers, however, strongly criticized the move. Senator Farooq H. Naek argued that the government increased prices instead of imposing petroleum levies, which could have generated revenue for the national treasury.

Some lawmakers also warned that if the regional conflict continues and global oil prices keep rising, petrol prices in Pakistan could potentially reach Rs500 per litre.

The government said it will review global prices again and decide on the next course of action after assessing developments in international markets.

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