The Government of Pakistan has increased the price of kerosene oil by Rs39.20 per litre while keeping petrol prices unchanged for the week ending March 20.
Following the latest price notification, kerosene commonly described as the poor man’s fuel has become the most expensive consumer fuel at Rs358 per litre and has seen the highest increase among petroleum products since March 7.
According to the Ministry of Energy, the government will pay Rs23 billion in price differential subsidy to oil marketing companies to maintain petrol prices despite a rise in international market rates.
The notification states that the petroleum levy on petrol will remain at Rs105.37 per litre, while the levy on diesel has been retained at Rs55.24 per litre.
Officials said the subsidy will cover the period from March 14 to March 20. During this period, the government will provide a subsidy of Rs49.63 per litre on petrol and Rs75.05 per litre on diesel.
The payments will be processed through the Oil and Gas Regulatory Authority, which will also verify and audit the bills submitted by oil marketing companies.
Meanwhile, the cabinet has approved the establishment of the Prime Minister’s Austerity Fund, while the Economic Coordination Committee has authorised the transfer of Rs27.1 billion into the fund. Of this amount, Rs23 billion will be allocated to the regulatory authority to cover fuel subsidy payments.
