Govt signals further relief on petroleum prices, LPG market to open up
Petroleum Minister Ali Pervaiz Malik said consumers can expect more good news on petroleum prices. The government says it will pass on any fall in international prices and is acting on high LPG rates.
- Government says further relief on petroleum prices is expected
- Any fall in international prices to be passed on to consumers
- Steps planned to curb LPG prices through market competition
- Rs130 billion in subsidies extended under public relief scheme
The government said on Tuesday that consumers can expect further good news on petroleum prices. Petroleum Minister Ali Pervaiz Malik made the announcement at a press conference in Islamabad, held alongside Information Minister Attaullah Tarar.
Malik said: "You saw a reduction in petrol and diesel prices yesterday, and today you will also receive good news about petrol prices." The government said it will pass on to consumers the benefit of any reduction in international petroleum prices.
According to The Express Tribune, Prime Minister Shehbaz Sharif has reportedly instructed that maximum relief be provided to low-income groups. The government has extended Rs130 billion in subsidies under its public relief scheme, and the fuel relief scheme offers targeted relief to 13 million people.
The government said it prevented a possible rise in petrol prices on Friday with the support of oil refineries. On Monday it announced that refineries would bear a monthly burden of Rs15 billion, allowing petrol to be sold Rs15 cheaper than in the global market.
On Friday the petrol pricing mechanism was revised. Refineries must now surrender the difference between import and ex-refinery prices as a petroleum levy. Petrol's import price will be based on the actual import cost of the relevant PSO cargo, or on the last available cargo if figures are unavailable. For the next 30 days, refineries get an ex-refinery price based on duty and premium levels applicable on March 7, 2026.
On LPG, the government said it is working to address excessive prices by opening the market to competition. Complaints have come from various cities of LPG being sold for as much as Rs800 per kilogram. Pakistan has around 10 million gas connections, and households without piped gas rely on LPG. Local LPG production is between 2,000 and 2,500 tonnes.
The government said it will ensure fair distribution of LPG quotas for hard-to-reach areas and is exploring relief for vulnerable gas consumers, including through BISP assistance. Companies importing fuel will have to publish their prices on their websites.
Pakistan meets around 70 per cent of its fuel needs through imports, and the government says its priority is importing at competitive prices. It added that regional challenges have made LNG imports difficult, so it is strengthening energy security infrastructure and preparing a strategy for adequate gas supplies in winter.
Why it matters
Petrol, diesel and LPG prices affect transport costs and household budgets across Pakistan, especially for homes without piped gas.
