The federal government has increased the prices of kerosene oil and light diesel oil (LDO) while keeping petrol and high-speed diesel prices unchanged in the latest petroleum price review.
According to the Ministry of Energy’s Petroleum Division, the price of kerosene oil has been raised by Rs39.20 per litre, bringing the new rate to Rs358.01 per litre. At the same time, the price of light diesel oil increased by Rs67.51 per litre, setting the new rate at Rs302.52 per litre.
Officials said the adjustments reflect rising international oil prices and domestic pricing mechanisms applied to deregulated petroleum products.
Petrol and Diesel Prices Kept Unchanged
Despite the increase in kerosene and LDO prices, the government decided to maintain the existing retail prices of petrol and high-speed diesel.
To prevent a price increase for these widely used fuels, the government will provide a subsidy worth Rs23 billion for one week, covering the period from March 14 to March 20.
Under this arrangement, the government will compensate oil marketing companies through price differential claims.
Officials said the subsidy amounts to Rs49.63 per litre on petrol and Rs75.05 per litre on high-speed diesel to offset the gap between global market costs and the regulated domestic prices.
Petroleum Levy Maintained
The petroleum levy on major fuels will remain unchanged under the latest decision.
The levy on petrol continues at Rs105.37 per litre, while the levy on high-speed diesel remains Rs55.24 per litre, according to the official notification.
Authorities say maintaining the levy while subsidising petrol and diesel is part of a broader effort to control the immediate impact of global oil market volatility on consumers.
Subsidy to Be Managed Through OGRA
The subsidy payments will be processed through the Oil and Gas Regulatory Authority (OGRA), which will verify invoices submitted by oil marketing companies before releasing the funds.
The government has also approved the creation of a Prime Minister’s Austerity Fund, with Rs27.1 billion allocated to support subsidy payments and related financial measures.
Officials say the mechanism aims to stabilise fuel prices temporarily while global energy markets remain volatile.
