The federal government of Pakistan has increased the price of kerosene oil by Rs39.20 per litre, setting the new rate at Rs358.01 per litre, according to a notification issued by the Ministry of Energy and the Oil and Gas Regulatory Authority (OGRA).

Previously, kerosene was priced at Rs318.81 per litre, making this one of the largest recent increases in kerosene prices. The revised rate has taken immediate effect.

Petrol and Diesel Prices Remain Unchanged

Despite the increase in kerosene prices, the government has decided not to raise petrol and diesel prices in the latest fuel price review.

Under the current pricing structure:

• Petrol will remain at Rs321.17 per litre
• High-speed diesel will stay at Rs335.86 per litre

Officials stated that the decision was taken to provide relief to consumers amid rising global oil prices.

Government Announces Rs23 Billion Fuel Subsidy

To keep petrol and diesel prices stable, the government has announced a Rs23 billion subsidy covering the period March 14 to March 20.

Under the subsidy plan:

• The government will provide Rs49.63 per litre subsidy on petrol
• Rs75.05 per litre subsidy on diesel

The subsidy amount will be paid to oil marketing companies through the price differential claims (PDC) mechanism, which allows the government to compensate companies for maintaining lower fuel prices.

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Petroleum Levy and Payment Mechanism

The government has also maintained the petroleum levy on both major fuels:

• Rs105.37 per litre on petrol
• Rs55.24 per litre on diesel

According to officials, the Oil and Gas Regulatory Authority (OGRA) will process payments for the subsidy claims after verifying and auditing the bills submitted by oil marketing companies.

PM’s Austerity Fund Approved

Meanwhile, the federal cabinet has approved the creation of the Prime Minister’s Austerity Fund to manage government spending more efficiently.

The Economic Coordination Committee (ECC) has approved the transfer of Rs27.10 billion to the fund as part of the government’s broader fiscal management strategy.

Government Aims to Ease Public Burden

Prime Minister Shehbaz Sharif stated that the government decided to keep petrol and diesel prices unchanged despite rising global oil prices in order to reduce financial pressure on ordinary citizens.

However, analysts warn that continued volatility in global oil markets could influence fuel prices in future reviews.