Govt Covers Rs 50/L Petrol Hike to Keep Prices Stable

Following our Friday’s report, the federal government has decided to keep fuel prices unchanged this week and absorb the increase in international oil costs

According to OGRA’s Friday night notification, the prices of petrol and diesel remain unchanged, with the government subsidizing Rs 50-75 per liter for both.

It means consumers will continue paying the same petrol and diesel prices for now, as the government is absorbing the recent increase in global oil prices rather than passing them on at the pump.

Emergency Reserves Activated

The decision came ahead of the scheduled Friday night fuel price revision after Prime Minister Shehbaz Sharif, in consultation with the military leadership, decided not to place an additional burden on the public.

The Prime Minister announced that, to sustain unchanged rates without passing costs to consumers, the government will use its Rs 389 billion emergency fund reserves to cover the price differential.

Detailed Breakdown of Petrol and Diesel Pricing Structure

Here’s the detailed breakdown of petrol and diesel pricing structure for this week:

Component	Petrol	Diesel
Ex-refinery price increase	PKR 46.88/liter	PKR 72.41/liter
Government subsidy	PKR 49.63/liter	PKR 75.05/liter
Petroleum levy	PKR 105.37/liter	PKR 55.24/liter
IFEM increase	PKR 2.75/liter	PKR 2.64/liter
OMC margins	PKR 7.87/liter	PKR 7.87/liter
Total Change	PKR 0/liter	PKR 0/liter

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A Cost the State Cannot Carry Forever

However, this level of subsidy may not be sustainable for long, as absorbing Rs. 50–75 per litre in subsidies is costly for the government.

Even if crude oil prices stay unchanged by the next fuel price revision on Friday, the government may still begin gradually passing on the additional cost to consumers, as it cannot keep absorbing the burden on its own for long.

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Therefore, consumers should expect diesel and petrol prices to rise in the coming weeks.