Pak Petroleum Minister Ali Malik Explains How India Avoided Oil Shock, But Islamabad Didn’t

Last Updated:April 30, 2026, 14:18 IST

Pakistan had earlier announced a PKR 80 per litre increase in petrol prices, but later withdrew hike due to public protests.

Pakistan Petroleum Minister Ali Malik has praised India for not increasing fuel prices even after Iran pushed global prices to a new high.

Malik contrasted Pakistan’s deepening fuel crisis with India’s relatively stable situation, explaining how New Delhi managed to cushion the impact of soaring global oil prices triggered by the Iran conflict.

While Pakistan is under strict bailout conditions imposed by the International Monetary Fund (IMF), the minister said that India maintains strategic oil reserves and has sufficient forex reserves to cushion the impact.

“India doesn’t just have 600 arab dollars worth of reserves, but they also maintain strategic reserves… They tried to insulate themselves by reducing taxation as oil prices soared… They had the fiscal space to do that," he said to a local news channel.

Malik explained that Pakistan engaged in intense backchannel negotiations with the IMF to mitigate the impact of soaring global oil prices on its citizens. He noted that while the initial budget agreement with international donors required a levy on fuel to cover losses, the sharp 3-4x increase in diesel costs forced a change in strategy.

To protect the public, the Pakistan government eliminated the levy on diesel and shifted the financial weight to petrol, while simultaneously implementing a targeted subsidy for motorcyclists, he said.

Malik emphasised that maintaining the IMF’s trust was critical and by convincing them to approve a Pakistan Rupee (PKR) 80 per litre reduction in the levy through diplomatic channels, the government avoided the severe economic consequences of a total breach of commitment.

PM Shehbaz Sharif had earlier announced a PKR 80 per litre increase in petrol prices to Pakistani PKR 378, days after the government hiked consumer prices for diesel and petrol due to rising global oil prices. The price hike was withdrawn after widespread public protests.

Malik had earlier said that Pakistan holds only 5 to 7 days of commercial crude oil reserves.

“We don’t have any strategic oil reserves … we only have commercial reserves. We have crude worth five to seven days. And the refined product with OMCs can only last 20-21 days. We are not like India, which has 60-70 days of reserves and can release it with just a single signature," he had said.

News world Pak Petroleum Minister Ali Malik Explains How India Avoided Oil Shock, But Islamabad Didn’t

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