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Petroleum Minister Responds on Pakistan Petrol Subsidies as Oil Shock Bites

Pakistan petrol subsidies

Federal Petroleum Minister Ali Pervez Malik said on Sunday that the government cannot keep offering unconditional relief on expensive petrol. He spoke to workers in his constituency about the pressure of the global oil shock. The minister said the cost of that shock runs into thousands of billions of rupees. Therefore, he argued, Pakistan petrol subsidies are not a workable answer to the oil storm facing the country. He said the country cannot confront the storm with unconditional support because the financial burden is too large.

Malik said the government must first arrange resources before it increases spending. Moreover, he warned that spending without secured funds could recreate the situation of 2022. Pakistan faced severe economic pressure and inflation in that year. He said the government wants to avoid a repeat of that experience. In his view, careful planning must come before any new spending.

Malik also said petrol prices in Pakistan follow international oil prices. He does not change them at his discretion. However, any decline in global oil prices would reach domestic prices as well. Instead of promising cuts, the minister pointed to this link as the deciding factor.

The minister will visit Saudi Arabia next week. He plans to thank the country for its oil supply and express solidarity during the current difficult situation. Meanwhile, he said Pakistan faces major challenges in the coming months. He has already briefed Prime Minister Shehbaz Sharif on the issues expected during December, January and February. Additionally, he has presented the measures needed before winter to the Prime Minister.

Finally, Malik said the government plans to address the expected gas shortage by arranging timely LPG supplies. Timely LPG arrangements form part of the government’s plan for the difficult months ahead. Still, the minister made clear that open-ended relief is off the table. His comments come as the country braces for a testing winter. For now, the position on Pakistan petrol subsidies remains firm.

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