Govt withholds fuel relief amid global oil drop to finance Balochistan highway

Despite a decline in global oil prices, the government has opted not to reduce local petroleum rates, announcing instead that the savings will be used to dualise a key highway in Balochistan, according to a statement from the Prime Minister’s House (PMO) Tuesday.

Prime Minister Shehbaz Sharif announced this in a federal cabinet meeting, the statement said.

“Addressing the participants of the meeting, the prime minister announced that instead of passing on the benefit of the recent decline in international petroleum prices to consumers, the saved amount would be utilised to dualise the vital N-25 Highway (Chaman–Quetta–Kalat–Khuzdar–Karachi Highway) in Balochistan,” it read.

“The initiative is aimed to provide better travel facilities to the people of Balochistan.”

As per the details, the prime minister directed that the restoration of the national highway should meet motorway standards.

Additionally, the same savings would also be used to complete Phase 2 of the Kachhi Canal, which is planned to irrigate hundreds of acres of land in Balochistan.

Balochistan Chief Minister Sarfaraz Bugti, who attended the federal cabinet meeting, expressed gratitude to the prime minister for the N-25 restoration project and other development initiatives for the people of Balochistan, the PMO said.

The federal cabinet also approved an amendment to the Petroleum Products (Petroleum Levy) Ordinance, 1961 on the recommendation of the Petroleum Division.

“This amendment will contribute to increasing national revenues.”

Global oil prices inched down on Tuesday after the International Energy Agency followed OPEC in slashing its oil demand forecast, though price falls were limited by US President Donald Trump’s suggestion of some new tariff exemptions.

Brent crude futures were down 54 cents, or 0.8%, at $64.34 per barrel by 1222 GMT. U.S. West Texas Intermediate crude dipped 57 cents, or 0.9%, to $60.96 a barrel.

Vacillating US trade policies have created uncertainty for global oil markets and prompted OPEC on Monday to lower its demand outlook.

The IEA also cut its forecasts on Tuesday for global oil demand growth to 730,000 barrels per day (bpd) this year from 1.03 million bpd - and to 690,000 bpd next year, citing escalating trade tensions.

In its previous review, Pakistan government reduced the price of petrol by Re1 per litre, while keeping the price of High-Speed Diesel (HSD) unchanged, according to a Finance Division notification. The prices of petrol and HSD were set at Rs254.63 and Rs258.64 per litre, respectively, till April 15.