ISLAMABAD: The federal government is preparing to review petroleum prices at its weekly meeting on Friday, amid growing concerns about a possible increase in petrol and diesel rates across Pakistan.
Reports suggest prices could rise sharply, with proposals pointing to increases of up to Rs55 per litre for petrol and Rs75 per litre for high-speed diesel. This has added to public worries about rising inflation.
Federal Minister for Petroleum Ali Pervaiz Malik addressed these concerns, stating that a major price hike is not expected at the moment. In an interview with a private news channel, he noted that Pakistan imports nearly 90 percent of its petroleum products from Gulf countries. He also said that steps have been taken to maintain a steady supply, and the country currently has enough stock for 26 days.
Meanwhile, the Oil and Gas Regulatory Authority (OGRA) is working on a summary of the new fuel prices, which will be sent to the Petroleum Division by Friday. After that, the proposal will be forwarded to Prime Minister Shehbaz Sharif for final approval before any official announcement is made.
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Government sources have indicated that if prices are increased, it may be done in phases over two weeks to reduce the burden on the public. Another option being considered is providing subsidies to keep prices at their current level, depending on the government’s financial capacity.
To provide some relief, the government has already allocated Rs27 billion to OGRA under price differential claims. This amount has been released from the austerity fund on the Prime Minister’s instructions to help manage the impact of rising fuel costs.
At the same time, Pakistan is in talks with the IMF regarding the next $1.2 billion tranche under its loan program. Discussions are ongoing on economic policies, with the IMF pushing for higher tax and non-tax revenues.
Proposals under review include a Rs5 per litre increase in levy on petrol and diesel, following similar measures on high-octane fuel, along with a Rs100 billion cut in the development budget.
Currently, petrol is priced at Rs321.17 per litre, while diesel is being sold at Rs335.86 per litre. High-octane petrol remains much higher at around Rs610 per litre after a recent increase of Rs200.