ISLAMABAD: The federal government has increased the price of kerosene oil by Rs39.20 per litre, while keeping the prices of petrol and diesel unchanged for the week ending March 20.
Following the latest notification, kerosene — often referred to as the fuel used by low-income households has become the most expensive petroleum product, reaching Rs358 per litre. Since March 7, it has experienced the largest price increase among all fuel types.
Officials from the Ministry of Energy said the government will provide Rs23 billion in price differential subsidies to oil marketing companies (OMCs) in order to maintain petrol prices despite rising international oil rates.
According to the official notice, the petroleum levy on petrol will stay at Rs105.37 per litre, while the levy on diesel remains Rs55.24 per litre.
Authorities explained that the subsidy will apply from March 14 to March 20, during which the government will cover Rs49.63 per litre for petrol and Rs75.05 per litre for diesel.
These subsidy payments will be handled through the Oil and Gas Regulatory Authority (OGRA), which will also review and verify the claims submitted by oil marketing companies.
Separately, the cabinet has approved the creation of the Prime Minister’s Austerity Fund. The Economic Coordination Committee has authorized Rs27.1 billion to be transferred to the fund, including Rs23 billion allocated to OGRA to support fuel subsidy payments.
