ISLAMABAD: A proposal has been circulated to the government recommending a substantial hike in fuel prices, with suggested increases of Rs29 per litre for petrol and Rs49 per litre for diesel, sources revealed on Friday.
The ultimate decision on adjusting petroleum prices will rest with Prime Minister Shehbaz Sharif, with an official announcement anticipated during his televised address scheduled for 10 pm.
Sources indicated that the government had previously absorbed a financial burden of Rs23 billion for a week, maintaining current fuel prices from March 14 to March 20 despite recommendations for a hike. The government covered this cost through price differential claims, preventing a rise of Rs49.63 per litre for petrol and Rs75.05 per litre for diesel during that period.
Officials suggested that the government might opt to keep fuel prices stable for the upcoming week by shouldering the additional costs through similar mechanisms.
Current fuel price structures reveal a significant tax component. Taxes constitute approximately Rs121.77 per litre around 38% of petrol prices, while diesel includes about Rs73.42 per litre in taxes, roughly 22% of its total cost. Other factors such as customs duties, petroleum levies, and climate support charges also contribute to the final prices paid by consumers.
Pakistan reviews and adjusts fuel prices periodically, aligning them with global oil market trends and fiscal policies. Any upward revision is expected to exert additional pressure on inflation rates across the country.
