Summary proposes steep hike in petrol, diesel prices

ISLAMABAD: A summary proposing a sharp increase in fuel prices has been sent to the government, recommending a rise of Rs29 per litre in petrol and Rs49 per litre in diesel, sources said on Friday.

According to Geo News, the final decision on revising petroleum prices will be taken by Prime Minister Shehbaz Sharif, with an official announcement expected in his address to the nation expected at 10pm.

According to sources, the government had earlier absorbed a financial burden of Rs23 billion for one week, maintaining petrol and diesel prices between March 14 and March 20 despite a recommended increase.

The amount was covered under price differential claims, with the government preventing a hike of Rs49.63 per litre in petrol and Rs75.05 per litre in diesel during that period, the sources added.

Officials said that the government may again choose to keep prices unchanged for the coming week by absorbing the cost through similar mechanisms.

Breakdowns of current fuel prices show that taxes account for a significant portion.

Around Rs121.77 per litre — approximately 38 per cent — of petrol prices consists of taxes, while diesel includes about Rs73.42 per litre in taxes, making up roughly 22 per cent of its price.

Fuel prices also include components such as customs duties, petroleum levy and climate support levies, contributing to overall costs for consumers.

Pakistan reviews fuel prices periodically in line with global oil trends and fiscal considerations, with any increase likely to add to inflationary pressures in the country.