ISLAMABAD:
Petroleum Minister Musadik Masood Malik informed the National Assembly on Thursday that oil prices in Pakistan had decreased by Rs 47.54 per liter since May.
Responding to several questions, the minister explained: “Pakistan buys fuel at international market prices, but we receive some discounts on the premium.”
And he explained: “According to an agreement, we buy diesel from Kuwait at international prices with a discount on the premium. In addition, sometimes we receive flexibility in the payment term for fuel costs from friendly countries.”
Malik noted that fuel prices are directly related to fluctuations in the international market and the dollar-rupee exchange rate. He highlighted that since the current government took office, the Pakistani rupee has stabilized against the dollar.
The minister assured that any reduction in international fuel prices is always passed on to the citizens. He also mentioned that the government is working to gradually bring retailers and wholesalers into the tax net, which would help reduce the oil tax.
With a higher tax-to-GDP ratio, the oil tax rate would decrease accordingly, he added.
Malik further stated that the country maintains sufficient stock of petrol and diesel to meet the needs of 21 days as per the policy.
