Federal Petroleum Minister Ali Pervaiz Malik has said petrol prices in Pakistan remain lower than those in Bangladesh, Sri Lanka and Turkey, while they are broadly comparable to fuel prices in India.
The remarks came during a meeting of the committee formed by Prime Minister Shehbaz Sharif to review and reform Pakistan's petroleum pricing mechanism.
Chaired by the petroleum minister, the meeting reviewed developments in the global energy market, examined various fuel pricing models and discussed measures to improve transparency in the pricing system.
The committee considered different pricing mechanisms in light of current international market conditions and recommended that the government publicly disclose the benchmark used to calculate domestic petroleum prices.
Participants also agreed that the Petroleum Price Stabilisation Fund should operate under a transparent and rules-based framework, free from arbitrary decision-making.
The meeting further endorsed the digitalisation of Pakistan's oil supply chain to strengthen monitoring and improve transparency across the sector.
Hormuz tensions add to market uncertainty
Ali Pervaiz Malik said renewed tensions surrounding the Strait of Hormuz had increased uncertainty in global energy markets, making the committee's work even more significant.
"The renewed closure of the Strait of Hormuz has created uncertainty in global energy markets," the minister said, adding that the government was closely monitoring developments.
Government plans refinery reforms
The petroleum minister also revealed that amendments to Pakistan's refinery policy have been proposed to reduce reliance on imported diesel.
He said increasing domestic diesel production would strengthen Pakistan's energy security while lowering dependence on fuel imports.
According to the minister, the committee's next meeting is expected to be its final session before submitting recommendations on petroleum pricing reforms to the prime minister.
