Pakistan hikes kerosene, keeps petrol, diesel prices unchanged

ISLAMABAD: The government of Pakistan has increased the price of kerosene oil by another Rs39.20 per litre and  kept petrol prices unchanged for the week ending March 20, ARY News reported.

With fresh price notification, Kerosene, commonly described as poor man’s fuel, has become the most expensive consumer product at Rs358 per litre and has seen the highest increase among all fuels since March 7.

According to Ministry of Energy, the Pakistan government will pay Rs23 billion in price differential subsidy for payments to oil marketing companies (OMCs) to keep the petrol prices unchanged despite hike in international market.

According to the notification, the 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 14 March to 20 March. During this period, the government will pay 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.

Meanwhile, 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.