Federal Government Plans Price Hike for Petrol and Diesel
The federal government is set to hike petrol and diesel prices within days as it moves to pass on rising global import costs to consumers. The decision follows a high-level meeting led by Finance Minister Muhammad Aurangzeb, where officials discussed the final price increase depending on global market trends.
Currently, the estimated price gap stands at around Rs.100 per litre for petrol and over Rs.200 for diesel. The federal government plans to cap fuel subsidies at Rs.158 billion, having already spent Rs.129 billion in the past three weeks.
President Asif Ali Zardari and Prime Minister Shehbaz Sharif have asked provinces to share the subsidy burden. Punjab and Sindh will contribute based on population, while KP and Balochistan will share costs based on fuel consumption.
All provinces agreed to provide targeted relief through a uniform national plan for motorcyclists and three-wheeler users. Sindh will support farmers via its Hari card system, with Punjab and KP adopting similar models.
The subsidy requirement is estimated at Rs.15–18 billion per week, potentially rising to Rs.30 billion. Concerns remain about the impact on people outside major cities, particularly regarding BRT fares which provinces agreed not to increase.