The Government of Pakistan has decided to keep fuel prices unchanged by maintaining the current petroleum levy on petrol and diesel.

According to a government notification, the petroleum levy on petrol will remain at Rs105.37 per litre, while the levy on diesel will stay at Rs55.24 per litre.

Currently, petrol is priced at Rs321.17 per litre and diesel at Rs335.86 per litre, pending the next price review.

Rs23 Billion Subsidy to Stabilize Fuel Prices

The government announced it will provide a subsidy of Rs23 billion to maintain the existing fuel prices during the period from March 14 to March 20.

Under the arrangement:

• Rs49.63 per litre subsidy will be provided on petrol
• Rs75.05 per litre subsidy will be provided on diesel

These payments will be made to oil marketing companies in the form of price differential claims.

Role of OGRA in Subsidy Payments

The subsidy amount will be disbursed through the Oil and Gas Regulatory Authority after verification and auditing of bills submitted by oil marketing companies.

The ministry said the Rs23 billion price differential claims will be processed and released following OGRA’s verification procedures.

Prime Minister’s Austerity Fund Approved

Meanwhile, the government has also secured approval to establish a Prime Minister’s Austerity Fund.

The Economic Coordination Committee approved the transfer of Rs27.1 billion into the fund.

Out of the total amount, Rs23 billion will be allocated to OGRA to cover the subsidy payments required to keep fuel prices stable.

Implementation Process

The Director General (Oil) has formally written to OGRA regarding the implementation of the price differential payment mechanism, ensuring that oil marketing companies receive compensation for maintaining current fuel prices.

The government says the move aims to protect consumers from immediate fuel price increases while managing the financial impact through targeted subsidies.