The federal government has increased the prices of kerosene oil and light diesel oil (LDO) while keeping the prices of petrol and high-speed diesel unchanged. The move was announced by the Ministry of Energy’s Petroleum Division as part of the latest petroleum price adjustment.
According to the official notification, the price of kerosene oil has been raised by Rs 39.20 per litre, setting the new rate at Rs 358.01 per litre. At the same time, the government increased the price of light diesel oil by Rs67.51 per litre, bringing the new price to Rs302.52 per litre from the previous Rs235.01 per litre.
These increases come amid rising global oil prices and supply uncertainties affecting the international energy market.
Petrol and diesel prices kept unchanged
Despite the increases in kerosene and LDO prices, the government chose to keep petrol and high-speed diesel prices unchanged to reduce the financial burden on consumers. Officials said this decision was made by maintaining the existing petroleum levy on the two fuels.
The levy on petrol remains Rs105.37 per litre, while the levy on diesel continues at Rs55.24 per litre, according to government data.
Authorities said stabilising petrol and diesel prices was important because these fuels are widely used in the transport, agriculture, and industrial sectors, meaning any increase could significantly raise inflation.
Government announces Rs23 billion fuel subsidy
To prevent petrol and diesel prices from rising, the government announced a subsidy worth Rs23 billion for one week, covering the period from March 14 to March 20.
Under this arrangement, the government will provide Rs 49.63 per litre subsidy on petrol and a Rs 75.05 per litre subsidy on high-speed diesel. These payments will compensate oil marketing companies for the difference between international prices and the capped domestic rates.
The subsidy will be paid as price differential claims, allowing oil companies to recover the cost gap while maintaining stable retail prices.
OGRA to manage subsidy payments
The Oil and Gas Regulatory Authority (OGRA) will handle the disbursement of the subsidy funds to oil marketing companies. Officials said the authority will also verify and audit the invoices submitted by companies before approving the payments.
The government has arranged funding for the subsidy through a Prime Minister’s Austerity Fund, which recently received Rs27.10 billion after approval by the Economic Coordination Committee (ECC).
Officials said the financial arrangement is intended to help manage rising global oil prices while protecting domestic consumers from immediate price shocks.
