ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday said the government would announce revised petroleum product prices on Friday, as it grapples with rising global oil costs and fiscal pressures, even as consumers continue to reel from historically high fuel rates.
In a statement, the premier acknowledged that the government faced “multiple challenges” in fixing domestic fuel prices, citing volatility in the international oil market as a key factor. He noted that a sustained increase in global crude prices had made the pricing mechanism “more complex”, adding that a final decision would be taken keeping public interest in view.
However, the anticipated revision comes at a time when petrol prices in the country are already hovering near record highs, significantly increasing the cost of living. Transport fares and essential commodity prices have surged in recent months, placing an added burden on households already strained by inflation.
On the fiscal front, sources in the Ministry of Finance said the government was considering a further increase in the petroleum levy — a move aimed at shoring up revenues and meeting conditions set by the International Monetary Fund.
Officials said collections from the levy were already on track to exceed the annual target of Rs1.468 trillion, yet proposals for additional increases were still under review. The development has raised concerns among economists, who warn that further hikes could directly fuel inflation and escalate transportation costs.
The latest deliberations follow a recent increase of around Rs27 per litre in petrol prices, which pushed the petroleum levy beyond Rs107 per litre — one of the highest levels in the country’s history.
Analysts note that while Pakistan has recently sought to position itself as a diplomatic intermediary in regional and global affairs, such efforts have offered little immediate economic relief at home, where citizens continue to bear the brunt of rising fuel costs and tightening fiscal measures.
