Petrol, diesel price hike expected as government reviews summary

ISLAMABAD: The government is expected to announce new petroleum product prices today, with a significant increase under consideration.

According to sources, a summary has been sent to the federal government proposing an increase of Rs29 per litre in petrol and Rs49 per litre in diesel prices. The final decision will be taken by Prime Minister Shehbaz Sharif.

Sources said the government had previously absorbed a financial burden of Rs23 billion for one week, maintaining petrol and diesel prices from March 14 to 20. This relief was provided under price differential claims.

On March 14, the government had withheld a proposed increase of Rs49.63 per litre in petrol and Rs75.05 per litre in diesel.

However, sources indicate that prices may again be kept unchanged for the coming week, as the government is considering continuing the price differential claim mechanism to shield consumers.

Currently, taxes account for Rs121.77 per litre of petrol, making up around 38% of its price. Diesel includes Rs73.42 per litre in taxes, approximately 22% of its total price. These prices also include customs duties, petroleum levy, and climate support levy.