Minister for Petroleum Division Musadik Masood Malik informed the National Assembly on Thursday that petroleum prices in the country had witnessed a Rs47.54 decrease per litre since May.

Malik said, “Pakistan purchases fuel at international market rate, however, we get some discount on its [premium].”

He added that under an agreement, Pakistan was purchasing diesel from Kuwait at an international rate with a discount on the premium.

“Sometimes, we get relaxation in payment period of the fuel cost from friendly countries,” he said, adding that fuel prices were directly linked with the international market, besides dollar-rupee parity.

Since the inception of the incumbent government, the Pakistani rupee had stabilised against the dollar, he said.

The petroleum minister also mentioned that the benefit of a reduction in fuel prices at the international market was always passed on to the public.

Malik said that the government was making efforts to gradually bring retailers and wholesalers under the tax net so that the petroleum levy could be minimised.

“With an increase in tax to GDP ratio, the rate of petroleum levy would decrease,” he said.

According to the policy, the stock of petrol-diesel was always maintained in the country to meet the 21-day requirement, Malik said while responding to a question.

Fourth straight cut likely in petrol, diesel rates

Last week, sources had told Dawn that the prices of major petroleum products — petrol and high-speed diesel (HSD) — were estimated to go do­wn by around Rs10 per litre fr­om Sept 15 for the fourth consecutive fortnight, unless the government increases the petroleum levy.

Informed sources told Dawn that the prices of petrol and HSD decrea­sed in the international market by about $5 per barrel in the last fortnight.

Depending on the final exchange rate calculation and exis­ting tax rates, the prices of both petrol and HSD are projected to come down by Rs10-11 per litre.

However, the government could increase the rate of petroleum levy by Rs5 per litre to benefit from the lower price cushion and partially make up for FBR’s Rs100bn revenue shortfall in the first two months of the current fiscal year. In that case, the price cut would be around Rs5-6 per litre.