The federal government has raised the price of kerosene oil by Rs39.20 per litre, bringing the new rate to Rs358.01 per litre. The revision was announced through a notification issued by the Ministry of Energy.
While kerosene prices have gone up, the government has chosen not to change the rates of petrol and diesel. The petroleum levy on both fuels has also been kept the same, with petrol carrying a levy of Rs105.37 per litre and diesel Rs55.24 per litre.
Officials said the government will provide a subsidy worth Rs23 billion to ensure that petrol and diesel prices remain stable. This subsidy will apply for the period from March 14 to March 20.
Under this arrangement, the government will contribute Rs49.63 per litre on petrol and Rs75.05 per litre on diesel. Authorities explained that the move is meant to protect consumers from a sudden increase in fuel costs.
The ministry stated that the subsidy funds will be released to oil marketing companies through the price differential claims system. The Oil and Gas Regulatory Authority will handle the processing of these payments, which together amount to Rs23 billion.
In a separate development, the ministry confirmed that the federal cabinet has approved the creation of the Prime Minister’s Austerity Fund. The Economic Coordination Committee of the cabinet has also cleared the transfer of Rs27.10 billion to this fund.
Officials further noted that all payments under the price differential system will go through proper verification and auditing of the bills submitted by oil marketing companies before any final disbursement is made.