Govt announces sharp increase in light diesel price

ISLAMABAD: The federal government has announced a massive increase in the price of light diesel, shortly after raising the price of kerosene oil, ARY News reported.

According to the latest notification, the price of light diesel has been increased by Rs67.51 per litre, bringing the new price to Rs302.52 per litre.

Earlier, the government also issued a notification announcing a sharp hike in kerosene oil prices. The price of kerosene was increased by Rs39.20 per litre, taking the new rate to Rs358.01 per litre.

The increases in light diesel and kerosene prices are expected to impact transportation costs and household expenses, particularly in rural areas where these fuels are widely used.

Meanwhile, the government has decided to keep petrol prices unchanged despite rising international rates. According to the Ministry of Energy, the government will pay Rs23 billion in price differential subsidy to oil marketing companies (OMCs) to maintain existing petrol prices.

As per the notification, the petroleum levy on petrol will remain at Rs105.37 per litre, while the levy on diesel has been retained at Rs55.24 per litre.

Officials said the subsidy will cover the period from March 14 to March 20. During this time, the government will provide a subsidy of Rs49.63 per litre on petrol and Rs75.05 per litre on diesel.

The payments will be processed through the Oil and Gas Regulatory Authority, which will also verify and audit the bills submitted by oil marketing companies.

Separately, the cabinet has approved the establishment of the Prime Minister’s Austerity Fund, while the Economic Coordination Committee has authorised the transfer of Rs27.1 billion into the fund. Of this amount, Rs23 billion will be allocated to OGRA to cover the fuel subsidy payments.