ISLAMABAD – Amid widespread criticism over latest petrol price hike, Federal Petroleum Minister Ali Pervaiz Malik defended the increase, saying it was driven by a sharp rise in global refined petrol prices amid Middle East tensions, not by crude oil prices.
He said Pakistan, which imports around 70% of its petrol, has no choice but to adjust local fuel prices in line with international market trends. Responding to criticism from economists and the public, the minister said escalating tensions in the Middle East have pushed international refined petrol prices sharply higher, leaving Pakistan with little choice but to adjust domestic fuel prices accordingly.
Rejecting claims that Pakistan bases its pricing on Saudi Aramco’s crude oil rates, Malik clarified that the country’s petrol prices are calculated using the average international price of refined petrol. He noted that refined petrol has climbed from around US$76 per barrel on February 27, 2026, to more than US$88 per barrel this week, a sharp increase that has directly impacted local fuel costs.
The minister added that Pakistan imports nearly 70% of its petrol requirements, making the country highly vulnerable to fluctuations in global fuel markets. Rising freight charges, insurance premiums, and other import-related costs have further added to the pressure on domestic prices.
Addressing criticism over fuel taxes, Malik said consumers are currently paying Rs. 85 per litre in combined Petroleum Levy and Carbon Support Levy. He argued that this is not an increase, pointing out that before the recent regional conflict, the combined levies stood at Rs. 86.90 per litre, making the current rate nearly Rs. 2 lower.
He maintained that Pakistan follows transparent fuel pricing mechanism and assured the public that any decline in international refined petrol prices would be reflected in lower prices at the pump.
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