ISLAMABAD (Kashmir English): The government has defended its recent fuel pricing policy, arguing that the change in the petroleum levy is aimed at supporting major sectors of the economy while maintaining fiscal stability.
In a statement posted on X (Twitter), Petroleum Minister Ali Pervaiz Malik stated that the government is facing major economic challenges and therefore has to make wise decisions to ensure that the country does not face financial instability.
The minister added that the increase in diesel prices has been kept low compared to the increase in the prices of other petroleum products, considering the product’s critical use in agriculture and transportation, as diesel is used to power machinery and vehicles, which could lead to higher costs in the country.
Ali Pervaiz Malik also clarified the petroleum levy imposed on fuels. According to him, the petroleum levy imposed on fuels is Rs105 per liter for petrol and Rs55 per liter for diesel. As Pakistan consumes more or less the same quantity of petrol and diesel every year, the average petroleum levy works out to Rs80 per liter, implying that the total tax remains the same.
He also stated that mishandling the global price fluctuations of petroleum products could cause economic instability in the country. He recalled the time when the Pakistan economic crisis 2022 was experienced due to mishandling fuel prices.
He also stressed the importance of consensus-building on major economic issues and stated that issues such as energy pricing need to be handled carefully for the economic stability of the country.
Hike in Petrol Prices
The federal government has increased the diesel and petrol prices by Rs55 per litre starting tonight, Petroleum Minister Ali Pervaiz Malik said, citing the surge in global prices due to the ongoing Iran-Israel and US military conflict.
Addressing the press conference along with Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb, the petroleum minister said that the new petrol price has been fixed at Rs321.17 per litre, effective from March 7, 2026.
Similarly, diesel price, with an increase of Rs55 per litre, would now be available for Rs 335.86 per litre from 275.7.
According to the sources, government officials told the Prime Minister in a briefing today that due to the sudden rise in global prices, an increase of about Rs 110 per liter is necessary in Pakistan.
However, the Prime Minister, while giving relief to the public, instructed that the increase should be reduced and limited to about Rs 55 to 60 per liter, sources said.
According to experts, if fuel prices in Pakistan are not aligned with global market levels, smuggling may increase due to cheap fuel. In such a case, the risk of fuel being illegally diverted to Afghanistan and India increases, which may cause further economic loss to Pakistan.
