The federal government has reportedly opted—for the third time in two months—not to pass on the relief from falling international oil prices to the public. Instead, it is considering imposing an additional charge of Rs4.12 per litre on petroleum products.
According to Dawn, the government has held back a total price reduction of around Rs18 per litre over the last two months. This strategy appears aimed at curbing a potential spike in fuel consumption.
Without these interventions, petrol and diesel prices were expected to decrease by about Rs3.5 and Rs7 per litre, respectively, in the next pricing cycle beginning May 15, driven by a global drop in oil prices and a small dip in petrol import premiums. To manage this, the government has reportedly increased the petroleum levy, including via a special presidential ordinance.
In this latest move, the Petroleum Division has advised the Economic Coordination Committee (ECC) that the financial gains from the lower global oil prices should be redirected to oil marketing companies (OMCs), refineries, and petrol dealers.
The new Rs4.12/litre surcharge would equate to an estimated annual impact of Rs75 billion, aimed at helping these stakeholders meet their operational and financial needs.
