ISLAMABAD (Kashmir English): The federal government plans to raise petrol and diesel prices within the upcoming days after consulting with provincial officials because it needs to recover increased international import expenses while maintaining financial support for selected recipients.
A high-level meeting led by Finance Minister Muhammad Aurangzeb, attended by all four chief ministers and senior officials, reviewed the situation. Officials said the final price hike will depend on global market trends, with even a full pass-through of international prices under consideration.
“Prices of both petrol and diesel are set to go up within days,” reported Dawn, adding that the size of the increase would depend on movements in global oil markets. The price gap currently stands at Rs. 100 per litre for petrol and Rs. 200 per litre for diesel.
The decision will be made after OGRA and the Petroleum Division present their revised calculations. The federal government has already spent Rs. 129 billion on fuel subsidies in the past three weeks and plans to cap it at Rs.158 billion.
President Asif Ali Zardari and Prime Minister Shehbaz Sharif have asked provinces to share the subsidy burden. The population of Punjab and Sindh will determine their contributions, while fuel consumption will determine the costs for KP and Balochistan.
All provinces agreed to provide targeted relief. Motorcyclists and three-wheeler users will receive subsidised fuel under a uniform national plan. Sindh will support farmers through its Hari card system, while Punjab and KP will adopt similar models.
The subsidy requirement is estimated at Rs.15–18 billion per week, which could rise to Rs.30 billion. The provinces reached an agreement to maintain current BRT fares, yet people who live outside major cities continue to use excessive petrol.
LPG Prices Increased
The Oil and Gas Regulatory Authority (OGRA) has sharply increased the liquefied petroleum gas (LPG) price by Rs 78.28 per kg, bringing the price to Rs 304.12 per kg.
According to the official notification issued on Tuesday, this increase in indigenous LPG as well as imported LPG will be effective from April 1, 2026.
After the rise, the new price of the domestic LPG cylinder has become expensive by Rs 923.71. The new price of an 11.8 kg domestic cylinder of LPG has been fixed at Rs 3588.59.
