The Pakistani government has defended the recent Rs55-per-litre increase in petroleum prices, telling the Senate Standing Committee on Finance that the adjustment was necessary to prevent fuel shortages and ensure uninterrupted supply.
Petroleum Minister Ali Pervaiz Malik said the decision was taken after internal consultations, noting that global oil prices have surged and logistical challenges have intensified due to ongoing regional tensions.
The minister explained that oil imported earlier at approximately $70 per barrel could now cost up to $120 per barrel, significantly increasing import costs. He warned that without the price adjustment, oil marketing companies might halt imports, potentially triggering severe domestic fuel shortages.
Malik highlighted that oil shipments to Pakistan currently take around 20 days, making it critical to maintain the financial capability of importers to sustain the supply chain. The government stressed that the move was intended to stabilize the market rather than generate revenue.
Opposition lawmakers criticized the hike, with Senator Farooq H. Naek arguing that the government should have imposed petroleum levies instead, which could have raised funds for the national treasury.
Some parliamentarians also warned that if regional conflicts persist and global oil prices continue to rise, petrol prices in Pakistan could potentially reach Rs500 per litre. The government said it will continue monitoring global trends and decide on the next course of action accordingly.
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