The federal government has raised the prices of kerosene oil and light diesel oil (LDO) while keeping petrol and high-speed diesel rates unchanged for the current pricing period. The adjustment was announced by the Petroleum Division under the Ministry of Energy.
According to the notification, the price of kerosene oil has increased by Rs39.20 per litre, bringing the new rate to Rs358.01 per litre.
Meanwhile, the price of light diesel oil has risen by Rs67.51 per litre, setting the new rate at Rs302.52 per litre, compared to the previous price of Rs235.01 per litre.
The increase affects fuels commonly used in rural areas, small industries, and certain agricultural activities.
Petrol and Diesel Prices Kept Unchanged
Despite the increase in kerosene and LDO rates, the government decided to keep petrol and high-speed diesel prices unchanged for consumers.
Officials said the decision was taken to shield the public from rising global energy costs. The government maintained the existing petroleum levy on both fuels.
Currently, the levy on petrol remains Rs105.37 per litre, while the levy on diesel stands at Rs55.24 per litre.
Government Announces Rs23 Billion Subsidy
To prevent an increase in petrol and diesel prices, the government will provide a subsidy of around Rs23 billion for one week, covering the period from March 14 to March 20.
Under this arrangement, the state will pay approximately Rs. 49.63 per litre on petrol and Rs. 75.05 per litre on high-speed diesel as price differential claims to oil marketing companies.
These payments will compensate companies for the difference between global market prices and the retail prices maintained domestically.
Subsidy to Be Paid Through OGRA
The subsidy payments will be handled through the Oil and Gas Regulatory Authority (OGRA), which will verify invoices submitted by oil marketing companies before releasing funds.
Authorities said a verification and audit mechanism will be used to ensure transparency in the subsidy process.
Austerity Fund to Support Energy Measures
To finance such financial adjustments, the government has also approved the establishment of a Prime Minister’s Austerity Fund.
The Economic Coordination Committee has approved the transfer of Rs27.10 billion to the fund, which will help support subsidy payments and related energy sector measures.
Officials say the initiative is part of broader efforts to manage rising global fuel costs while limiting the burden on consumers.
