ISLAMABAD – Petroleum Minister Ali Pervaiz Malik has said that the new prices of petroleum products will be announced tomorrow and will be determined on the basis of average international prices.
He said it cannot be said at this stage whether petrol will become more expensive. Finance Minister Muhammad Aurangzeb noted that petroleum prices are rising in the global market.
Briefing the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, the petroleum minister said Pakistan imports crude oil from Gulf countries. He explained that crude oil normally reaches Pakistan through the Strait of Hormuz in four to five days, while shipments from Saudi Arabia’s Yanbu port will take around 15 to 20 days.
Ali Pervaiz Malik added that two Pakistan National Shipping Corporation (PNSC) vessels are currently stuck in the Strait of Hormuz. An oil tanker from Saudi Arabia will first reach Oman, while local refineries may take 15 to 20 days to resume regular supply. He also noted that ships for oil imports are not easily available, and even if a vessel is found, insurance coverage remains a challenge.
The minister further said petroleum prices in the global market have risen from $78 to around $120 per barrel, questioning who would bear the losses if prices were fixed at 2022 levels.
Meanwhile, Finance Minister Muhammad Aurangzeb told the committee that the International Monetary Fund (IMF) statement has been issued and the global lender is monitoring the impact of the ongoing conflict on Pakistan’s economy. He warned that if the war continues for a longer period, pressure on external payments may increase and remittances could also be affected.
