Federal Minister for Petroleum Ali Pervaiz Malik said that, on the instructions of the Prime Minister, consultations were held with local refineries so that the entire burden of the increase in the global market is not passed on to the public.
Federal Minister for Petroleum Ali Pervaiz Malik said on Monday that Pakistan’s oil refineries have agreed to bear an additional burden of Rs.15 billion ($54 million) per month to enable the government to sell petrol at a price Rs.15 per litre lower than the price in the international market.
During a joint press conference with the Minister for Information in Islamabad on Monday, the Petroleum Minister, while detailing global oil market prices, import costs, and the government’s measures to provide relief to local consumers, said that due to tensions in the region, in addition to global oil prices, shipping freight and insurance costs have also increased significantly. Large oil tankers that were previously available for a few hundred thousand dollars, their rents have now reached up to $1 million.
According to the Petroleum Minister, a significant increase has also been observed in the premium on imported oil in recent tenders of Pakistan State Oil (PSO). He said that the prices approved before October 31 included a premium of about $20 per barrel, while in subsequent tenders there was a risk that this premium would exceed $30.
He said that on the instructions of the Prime Minister, consultations were held with local refineries so that the entire burden of the increase in the global market is not passed on to the public. According to him, about 30 per cent of Pakistan’s petrol needs are met by local refineries, while the remaining 70 percent has to be imported.
He further said that the government’s objective is not to permanently control prices but to return to deregulation and a competitive system after the situation normalises.
After the attack on the ship carrying LNG for Pakistan from Qatar, Minister for Information Attaullah Tarar advised to refrain from speculation on the incident, saying that the ship was not targeted while crossing the Strait of Hormuz but before that.
The Qatar Gas Transport Company ship ‘Al Mayeda’ was attacked in the Gulf on October 30. This ship was carrying LNG from Qatar to Pakistan. After the attack, the ship changed its course and turned back towards the Persian Gulf. According to reports, all 25 crew members on board the ship remained safe.
Qatar and Saudi Arabia have also condemned this attack. Qatar’s Ministry of Foreign Affairs described the incident as dangerous for global energy supply and maritime transport security, saying that investigations have been initiated to determine the circumstances of the attack and those responsible. Saudi Arabia also condemned the targeting of the ship and emphasized the protection of global trade and sea routes.
During the press conference, when the government ministers were asked about this attack, those responsible for it, and its possible impact on Pakistan’s energy supply, the Information Minister said that
at this time there is no shortage of anything in Pakistan and even in the most difficult circumstances cargos have continued to arrive, due to which the supply has remained intact.
He said that the current situation is sensitive, so he does not want to go into more details on this matter. Instead of talking on the basis of unverified reports and sources, one should wait for verified information. He said that as soon as authentic information becomes available, it will be shared with the media.
On the other hand, the Petroleum Minister, while clarifying the location of the ship, said that the location where the ship was targeted was before the Strait of Hormuz, not while crossing the Strait of Hormuz. He refrained from giving further details beyond that.
At the press conference, the Petroleum Minister said that the government is taking practical steps to ensure the supply of LNG and the availability of gas through pipelines in winter. According to him, further progress in this regard will be informed in the next one or two days.
By- Laiba yousafzai
