Government May Hold Fuel Prices Despite Global Increase

The federal government is reportedly evaluating a proposal to maintain current retail prices of petrol and high-speed diesel (HSD) unchanged until March 31, notwithstanding upward trends in international oil markets, as reported by The News International.

This position was communicated to industry stakeholders during a meeting chaired by the Petroleum Minister, Ali Pervez Malik, wherein oil marketing companies were instructed to ensure uninterrupted supply and refrain from any form of hoarding or speculative practices.

According to officials, prevailing increases in global crude oil prices could translate into an estimated upward adjustment of approximately Rs29 per litre for HSD and Rs19 per litre for petrol.

Authorities further indicated that the government has already absorbed prior pricing pressures by approving payment of approximately Rs23 billion in price differential claims to oil marketing companies, facilitated through emergency fiscal support.

In parallel, efforts are ongoing to secure additional crude and refined petroleum cargoes to stabilise domestic supply, including potential procurement arrangements involving Russia.

Separately, a crude oil consignment of approximately 70,000 tonnes has reportedly arrived from Fujairah to support local refinery operations.

The government has also directed regulatory action against oil marketing companies maintaining stock levels exceeding 20 days without releasing supplies into the market, as well as entities failing to comply with prescribed minimum inventory requirements.

Officials have confirmed that show-cause notices will be issued to companies found in violation of these directives.

Additionally, authorities are considering demand-management measures during the upcoming Eid period, including discouraging non-essential travel to northern regions, in light of prevailing regional uncertainties.