Refineries to Absorb Rs15 Per Litre Levy to Keep Petrol Prices Down
The move gives the government breathing space to disburse targeted subsidies, open LPG to competition, arrange LNG imports for winter, reassure consumers.
Overview
- Pakistan’s oil refineries agreed to bear about Rs15 per litre of the petroleum levy for 30 days, a step the petroleum minister said shifts roughly Rs15 billion of monthly cost off consumers.
- The federal cabinet approved a temporary price‑setting formula that fixes ex‑refinery entitlements at pre‑war levels for 30 days and requires refineries to surrender the difference under the Petroleum Levy.
- Ministers reported small petrol and diesel reductions on November 3 and promised further cuts or “good news” for consumers while pledging continued disbursement of a motorcyclist and car‑owner fuel subsidy.
- Separately, the petroleum minister said a Pakistan‑bound LNG tanker was hit before entering the Strait of Hormuz, an incident now under regional investigation with Qatar and Saudi Arabia condemning the attack.
- Officials say there are no immediate fuel shortages and that the policy package is designed to shield households this winter while the government secures additional LNG cargoes and opens LPG markets to competition.