Pakistan government considers freezing petroleum product prices despite global increases
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Subsidised fuel scheme on the cards for bikes, rickshaws
• Senate panel told ample petrol, diesel available; import of lower-quality fuel okayed; price hike ‘did not benefit’ OMCs • Officials tell panel no LNG supply from Qatar since March 2, gas will not be available after April 14 • Petrol committee briefed March fuel requirements fully secured, coverage available up to mid-April ISLAMABAD: The federal government has planned a subsidised fuel scheme for motorcyclists and rickshaw drivers to cushion the impact of a massive hike in oil prices, following a similar move by the Khyber Pakhtunkhwa government. “The government is working on a package to provide relief to (owners of) motorcycles and rickshaws,” said newly appointed petroleum secretary, Hamed Yaqoob Sheikh, while testifying before the Senate Standing Committee on Petroleum on Monday. He claimed that the government had taken measures which would “provide relief to the people”. On Sunday, the government increased the price of kerosene oil by Rs40 per litre and approved Rs23 billion for oil marketing companies, as it kept the petrol and high-speed diesel prices unchanged for the current week. Earlier this week, there was a Rs55 hike in the price of petrol due to the Iran war. Mr Sheikh told the Senate panel chaired by Senator Manzoor Ahmed that Pakistan had sufficient petrol reserves for 27 days and diesel reserves for 21 days. The secretary added that jet fuel (JP1) reserves were available for 14 days, crude oil reserves for 11 days, and liquefied natural gas (LNG) reserves for nine days. The Senate panel was also informed that the government had allowed the import of oil that falls short of the Euro 5 standard. Mr Sheikh said that 70 per cent of Pakistan’s petrol comes from the Middle East, adding that the price of high-speed diesel rose from $88 to $187, while petrol increased from $74 to $130 due to the Strait of Hormuz blockade. Fuel availability Meanwhile, a petrol monitoring committee led by Finance Minister Muhammad Aurangzeb noted the country’s fuel availability for March was fully secured, while coverage was available up to mid-April based on current cargo planning and supply arrangements. Efforts were underway to extend coverage further towards the end of April, the ministerial committee noted. “Overall stock levels and scheduled imports indicate that the country maintains comfortable inventories of crude oil and key petroleum products for March, with sufficient planning in place to ensure continued availability during April,” said a statement issued after the meeting. The meeting was informed that procurement strategies were already moving towards greater diversification, with efforts underway to broaden sourcing from the international market and reduce reliance on any single corridor. The minister noted that the current stock position and supply outlook remain stable and that, based on the reports presented, there was no basis for panic buying or unnecessary stockpiling of fuel. The meeting directed the relevant authorities, in coordination with the Oil and Gas Regulatory Authority (Ogra) and the provincial governments, to closely monitor stock levels and market activity to deter hoarding. Price hike scrutinised During the Senate committee meeting, Senator Manzoor Ahmed alleged that the “entire benefit was passed on” to oil marketing companies, while following the international price increase, consumers were charged high prices on stocks that had already been purchased. In response, the petroleum secretary said that the price was hiked to stop hoarding, adding that this “did not benefit oil marketing companies”. He said oil marketing companies continued to import despite the increase in prices, adding the move had “affected oil marketing companies across the country”. Asked by Senator Hidayatullah about petroleum product prices before March 7 and the extent of their increase, Ogra officials said diesel prices had risen by 100pc, while petrol had increased by 70pc. “Sixty per cent of India’s petrol imports have been affected … All countries are trying to ensure the safe supply of petrol,” Secretary Sheikh said, adding that two of Pakistan’s ships were also stuck in the Strait of Hormuz. LNG imports Officials said that there were two agreements in place for LNG imports from Qatar but “LNG supply from Qatar had been completely stopped since March 2”. “Eight cargoes were scheduled to arrive in March, of which only two arrived, while six cargoes were expected in April” but their arrival was uncertain. The officials added that Sui Southern Gas Company had cut gas supply to a fertiliser plant by 50pc, and gas supply to the power sector had been reduced from 300 million cubic feet per day (mmcfd) to 130 mmcfd. Officials said LNG would not be available in the country after April 14, and the power sector’s gas requirements would not be met in April, adding that “the sector’s needs will be met from other sources”. They further said that gas would be supplied to domestic consumers, while LNG could be purchased from the State Oil Company of the Azerbaijan Republic (Socar). However, spot purchases would cost $24 per unit, while gas from Qatar was available at $9 per unit. “This will make electricity more expensive,” they added. Published in Dawn, March 17th, 2026
DawnMarch 17, 2026 at 02:59 AM UTCMarch fuel requirements ‘fully secured’, coverage available up to mid-April, committee told
ISLAMABAD: A committee tasked with monitoring petrol prices was informed on Monday that Pakistan was “adequately positioned in terms of fuel availability”, with March requirements fully secured and, based on current cargo planning and supply arrangements, coverage was available up to mid-April. The development comes after the government announced a Rs55 per litre hike in the prices of both petrol and high-speed diesel to deal with the fuel crunch resulting from the ongoing Middle East conflict. According to a finance ministry statement, the committee was briefed today on the national inventory of crude oil and refined petroleum products, ongoing import arrangements, and supply chain logistics. The committee was informed that the country “remains adequately positioned in terms of fuel availability, with March requirements fully secured”. It was further briefed that, “based on current cargo planning and supply arrangements, coverage is available up to mid-April” and efforts were being taken to extend coverage towards the end of April, the statement added. It said that the meeting of the committee, chaired by Finance Minister Muhammad Auragzeb, was held at the Finance Division in Islamabad as part of its “daily review” of the energy sector amid tensions in the Middle East. The committee was told that overall stock levels and scheduled imports indicate that the country has “comfortable inventories of crude oil and key petroleum products for March, with sufficient planning in place to ensure continued availability during April”. During the meeting, “procurement patterns and maritime logistics” were reviewed as well. As per the statement, the committee stressed the need for “further diversifying sources of supply to enhance resilience of the national energy supply chain”. The committee was further informed that “procurement strategies are already moving towards greater diversification, with efforts under way to broaden sourcing from the international market and reduce reliance on any single corridor, thereby strengthening Pakistan’s overall energy security”. The finance minister gave reassurance that the government remained “fully focused on ensuring uninterrupted availability of petroleum products across the country,” adding that the “current stock position and supply outlook remain stable”. He stressed that “there is no basis for panic buying or unnecessary stockpiling of fuel”. The committee also directed relevant authorities, in coordination with the Oil and Gas Regulatory Authority and provincial governments, to “closely monitor stock levels and market activity to check any incident of hoarding”. “It was emphasised that any attempts to create artificial shortages or disrupt normal supply would be dealt with strictly in accordance with the law,” the statement read. In attendance at the meeting were Petroleum Minister Ali Pervaiz Malik, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry, State Bank of Pakistan Governor Jameel Ahmad and other relevant officials. Govt ‘fully prepared’ to deal with ongoing situation: PM Shehbaz Separately, Prime Minister Shehbaz Sharif held a meeting where consultations were held on “further relief measures” for the public, state broadcaster PTV reported. During the meeting, the premier noted that due to the government’s “timely action”, the country maintained an “adequate quantity of petroleum products”. He added that the continuous supply of oil was made possible “due to the decisions of the committee formed to maintain economic stability in the country”. Speaking about the austerity measures, the premier said that “work was underway to take further steps”. He maintained that the third-party auditors have been issued instructions to ensure compliance with the measures. He said that the government “remained fully prepared” to deal with the ongoing situation. “Economic stability and public relief remain the government’s top priority,” PM Shehbaz said. He issued directives to fuel distribution companies to ensure that the fuel is sold at the government-mandated rates. The prime minister was briefed that the government continued to monitor fuel rates, as well as the available oil reserves, and other relief measures. He was also briefed about of a newly-introduced feature on the “PAK App through which consumers can report the unavailability of fuel or its sale at exorbitant rates”. ‘Petrol reserves sufficient for 27 days, diesel for 21’ Earlier in the day, a meeting of the Senate Standing Committee on Petroleum was told by Petroleum Secretary Hamed Yaqoob Sheikh that Pakistan has sufficient petrol reserves for 27 days and diesel reserves for 21 days. The standing committee was chaired by Senator Manzoor Ahmed. The secretary said that jet fuel (JP1) reserves were available for 14 days, crude oil reserves for 11 days and liquefied natural gas (LNG) reserves for nine days. Additionally, he informed the committee that the import of oil of quality below Euro 5 standard had now been allowed. Sheikh said that 70 per cent of Pakistan’s petrol comes from the Middle East, and due to the suspension of ship movements affecting supply, prices have increased. The price of high-speed diesel rose from $88 to $187, while petrol increased from $74 to $130, he added. “A ministerial committee formed by the prime minister reviews the situation of petroleum products on a daily basis,” Sheikh told the meeting, adding that the government was trying to increase the use of existing reserves. Senator Manzoor Ahmed said that the “entire benefit was passed on” to oil marketing companies. In response, the petroleum secretary said that the price hike had been adopted to stop the hoarding of petroleum, and this “did not benefit oil marketing companies”. Oil marketing companies continued to import despite the increase in prices, he added, saying that the move had “affected oil marketing companies across the country”. Asked by Senator Hidayatullah about petroleum product prices before March 7 and the extent of their increase, Ogra officials said that diesel prices had risen by 100pc, while petrol had increased by 70pc. The petroleum secretary added that “the government is working on a package to provide relief to motorcycles and rickshaws” and that they have taken measures which would “provide relief to the people”. “Sixty per cent of India’s petrol imports have been affected … All countries are trying to ensure the safe supply of petrol,” he said, adding that two of Pakistan’s ships were also stuck in the Strait of Hormuz. Officials said that there were two agreements in place for importing LNG from Qatar. “LNG supply from Qatar has been completely stopped since March 2,” Ogra officials said. “Eight cargoes were scheduled to arrive in March, of which only two arrived, while six cargoes are expected in April.” The officials added that Sui Southern Gas Company had cut gas supply to a fertiliser plant by 50pc, and gas supply to the power sector had been reduced from 300 million cubic feet per day (MMCFD) to 130 MMCFD. Officials said LNG would not be available in the country after April 14, and the power sector’s gas requirements would not be met in April, adding that “the sector’s needs will be met from other sources”. They further said that gas would be supplied to domestic consumers, while LNG could be purchased from the State Oil Company of the Azerbaijan Republic (Socar). However, spot purchases would cost $24 per unit, while gas from Qatar is available at $9 per unit. “This will make electricity more expensive,” they added. On Sunday, the government also increased the price of kerosene oil by another Rs40 per litre and approved a Rs23 billion price differential subsidy for payments to oil marketing companies to keep the prices of petrol and high-speed diesel (HSD) unchanged for the current week. Last week, PM Shehbaz announced that petroleum prices would remain unchanged for the current review period, stressing that the decision was aimed at easing the financial burden on the public.
DawnMarch 16, 2026 at 03:43 PM UTCPetrol reserves sufficient for 27 days, diesel for 21: petroleum secretary tells Senate committee
ISLAMABAD: Pakistan has sufficient petrol reserves for 27 days and diesel reserves for 21 days, Petroleum Secretary Hamed Yaqoob Sheikh said on Monday while addressing a meeting of the Senate Standing Committee on Petroleum. The standing committee, chaired by Senator Manzoor Ahmed, was meeting after the government announced a Rs55 per litre hike in the prices of both petrol and high-speed diesel amid the ongoing Middle East conflict, which has resulted in a fuel crunch. The secretary added that jet fuel (JP1) reserves were available for 14 days, crude oil reserves for 11 days and liquefied natural gas (LNG) reserves for nine days. Additionally, he informed the committee that the import of oil of quality below Euro 5 standard had now been allowed. Sheikh said that 70 per cent of Pakistan’s petrol comes from the Middle East, and due to the suspension of ship movements affecting supply, prices have increased. The price of high-speed diesel rose from $88 to $187, while petrol increased from $74 to $130, he added. “A ministerial committee formed by the prime minister reviews the situation of petroleum products on a daily basis,” Sheikh told the meeting, adding that the government was trying to increase the use of existing reserves. Senator Manzoor Ahmed said that the “entire benefit was passed on” to oil marketing companies. In response, the petroleum secretary said that the price hike had been adopted to stop the hoarding of petroleum, and this “did not benefit oil marketing companies”. Oil marketing companies continued to import despite the increase in prices, he added, saying that the move had “affected oil marketing companies across the country”. Asked by Senator Hidayatullah about petroleum product prices before March 7 and the extent of their increase, Ogra officials said that diesel prices had risen by 100pc, while petrol had increased by 70pc. The petroleum secretary added that “the government is working on a package to provide relief to motorcycles and rickshaws” and that they have taken measures which would “provide relief to the people”. “Sixty per cent of India’s petrol imports have been affected … All countries are trying to ensure the safe supply of petrol,” he said, adding that two of Pakistan’s ships were also stuck in the Strait of Hormuz. Officials said that there were two agreements in place for importing LNG from Qatar. “LNG supply from Qatar has been completely stopped since March 2,” Ogra officials said. “Eight cargoes were scheduled to arrive in March, of which only two arrived, while six cargoes are expected in April.” The officials added that Sui Southern Gas Company had cut gas supply to a fertiliser plant by 50pc, and gas supply to the power sector had been reduced from 300 million cubic feet per day (MMCFD) to 130 MMCFD. Officials said LNG would not be available in the country after April 14, and the power sector’s gas requirements would not be met in April, adding that “the sector’s needs will be met from other sources”. They further said that gas would be supplied to domestic consumers, while LNG could be purchased from the State Oil Company of the Azerbaijan Republic (Socar). However, spot purchases would cost $24 per unit, while gas from Qatar is available at $9 per unit. “This will make electricity more expensive,” they added. On Sunday, the government also increased the price of kerosene oil by another Rs40 per litre and approved a Rs23 billion price differential subsidy for payments to oil marketing companies to keep the prices of petrol and high-speed diesel (HSD) unchanged for the current week. Last week, Prime Minister Shehbaz Sharif announced that petroleum prices would remain unchanged for the current review period, stressing that the decision was aimed at easing the financial burden on the public.
DawnMarch 16, 2026 at 11:47 AM UTCGovt hikes kerosene by Rs40 per litre, keeps petrol and diesel prices unchanged
The government has increased the price of kerosene oil by another Rs40 per litre and approved Rs23 billion price differential subsidy for payments to oil marketing companies (OMCs) to keep the prices of two other oil products — petrol and high-speed diesel (HSD) — unchanged for the week ending March 20. Otherwise, the petrol and HSD prices should have gone up by more than Rs49 and Rs75 per litre with effect from March 14. With fresh price notification, Kerosene, commonly described as poor man’s fuel, has become the most expensive consumer product at Rs358 per litre and has seen the highest increase among all fuels since March 7. The kerosene rate has now increased by about 12.6pc on March 14, bringing its cumulative increase to 90pc from Rs188.87 earlier this month. In formal orders, the petroleum division of the energy ministry said that the prime minister had approved keeping the prices of HSD and MS unchanged, and that the government will pay the price differential of Rs75.05 per litre and Rs49.63 per litre on HSD and MS, respectively, to OMCs. The estimated Price Differential Claims (PDC) of OMCs for the period from March 14, 2026, to March 20, 2026, i.e. Rs23bn would be paid by the Oil and Gas Regulatory Authority (OGRA). “In this regard Finance Division, has obtained approval of the Cabinet for the creation of the ‘Prime Minister’s Austerity Fund’ and of ECC for allocation/ transfer of a sum of Rs27.1 billion to the Fund. An amount of Rs23 billion will be transferred to OGRA for the said purpose from the Fund”, the notification said. The mechanism for payment of PDC, to be developed by the Oil and Gas Regulatory Authority (OGRA), shall also include the process for verification/ audit of the invoices received from OMCs. The Ogra has been directed to take the required action to implement these decisions and make the payments. Last week, the government also increased the price of kerosene by almost 70 per cent, from Rs130.08 to Rs318.81 per litre. The previous price of kerosene, which went into effect on March 1, was Rs188.73 per litre. Kerosene is commonly used by households in remote areas where access to liquefied petroleum gas cylinders is difficult. However, unscrupulous elements also used it to mix with petrol for unfair profiteering, exploiting the large price gap between petrol and kerosene, which has now been removed. The government has kept the petroleum levy on diesel unchanged at Rs55.24, and on petrol and higher-quality fuels like 95 and 97 Ron at Rs105.37 per litre, in addition to the Rs2.50 per litre climate support levy. In addition, the government charges a duty of about Rs31 and Rs25 per litre on HSD and petrol, respectively. It also charges Rs20.36 and Rs15.84 per litre petroleum levy on kerosene and light diesel, and Rs77 per litre on furnace oil. Moreover, about Rs6.50 per litre on HSD and more than Rs8 per litre on petrol and kerosene inland fuel equalisation margin is also to ensure uniform rates across the country. Petrol and high-speed diesel are the major revenue drivers, with monthly sales of about 700,000 to 800,000 tonnes, compared with just 10,000 tonnes of monthly demand for kerosene.
DawnMarch 15, 2026 at 03:33 AM UTCPM Shehbaz says prices of petroleum products not being increased despite uptick in global market
Prime Minister Shehbaz Sharif on Friday decided that the prices of petroleum products would not be increased this time despite the uptick in the global oil market. According to a statement issued by the Prime Minister’s Office (PMO), PM Shehbaz was quoted as saying that prices were not being increased to reduce the burden on the common man. He said that as per his “promise”, he would provide relief to the people as much as possible. “The global economy is currently under pressure due to regional tensions, which is likely to have a profound impact on Pakistan’s economy,” the premier said. He said that because of timely policy-making, austerity measures by the government and financial discipline, efforts were being made to deal with this situation effectively. The premier further added that provincial governments were also supporting the Centre in its austerity measures, which was welcome. He said that due to the efforts of the diplomatic and economic teams, adequate quantities of crude oil were available for the country’s needs. “The federal and provincial governments are working together to ensure that no one is charged more than the price set by the government,” he said. He prayed that the global situation would improve and that the prices of petroleum products would stabilise. The development comes a week after the government increased petrol and diesel prices amid the war in Iran, which has caused massive disruption in oil supply. Subsequently, the government had also announced a host of austerity measures to cope with the situation. The next petrol price review was scheduled for Sunday (March 15), but ministers had indicated on Thursday that it could be brought forward to Friday (today). Highly placed official sources had told Dawn that PM Shehbaz informed a recent consultative session attended by federal and provincial representatives that he and the military leadership had jointly decided after the first Rs55 per litre increase, there would be no further price hike in the near future, regardless of developments in the Middle East. The premier told the session, also attended by Chief of Defence Forces Field Marshal Asim Munir, that the government would use block allocations for emergencies to absorb further price hikes. According to sources, the prime minister said that no other emergency could be worse than the situation currently faced by the nation due to fuel supply disruptions following the US-Israel attack on Iran and its aftermath.
DawnMarch 13, 2026 at 01:13 PM UTCGovt mulling not hiking prices of petroleum products further despite increase in global market
ISLAMABAD: The government has banned the export of all petroleum products and is considering holding back any immediate increase in petroleum prices, despite continued upward movement in the global market. Instead, it plans to draw on a Rs389 billion ‘emergency fund’ to absorb future price shocks. The decision comes after the latest estimates, based on existing tax rates and pricing formula, suggest that the price of high-speed diesel (HSD) going up by Rs56 per litre and that of petrol by Rs41. Petrol and HSD are currently sold on the higher side of Rs322 and Rs337 per litre, respectively, at retail. Likewise, estimates also showed an increase of Rs7 and Rs53 per litre for the prices of kerosene and light diesel oil, respectively. The next price review is scheduled for March 15 (Sunday) but ministers indicate these could be reviewed on March 13 (Friday). Highly placed sources told Dawn that Prime Minister Shehbaz Sharif recently told a consultative session — attended by federal and provincial representatives — that he and the military leadership had jointly decided that after the initial increase, there would be no further price hike, at least in the near future, regardless of the prices in the Middle East. The session, also attended by Field Marshal Asim Munir, was informed that the government would use block allocations for emergencies to absorb further price hikes. The prime minister told the meeting that no other emergency could be worse than what the whole nation was facing at the moment because of fuel supply disruptions. However, the sources said the cabinet members were still divided over the prime minister’s announcement and technocrats, particularly those directly dealing with the International Monetary Fund (IMF), opposed disturbing the pricing buffers currently in place. This was reinforced at a meeting of the Senate Standing Committee on Finance, where Petroleum Minister Ali Pervez Malik said attempts were being made to manage petroleum prices under the directives of the prime minister and that a decision would be made after reviewing the global prices on Friday. Minister of State for Finance and Railways Bilal Azhar Kiyani told the meeting that while prices would be reviewed on Friday, the government would make all efforts not to further burden the people. He said international prices showed a rising trend. “The prime minister has also directed that the burden should not be passed on to the people,” he said. Both ministers also defended the March 7 decision to increase prices by Rs55 per litre, saying that otherwise there would have been supply disruptions as seen in Bangladesh and India, where people had also attacked retail stations. Finance Minister Muhammad Aurangzeb, meanwhile, said international oil prices were still going up. It may be noted that benchmark Brent prices are generally quoted in the public and social media discourse for comparisons against local retail prices; the former has no direct linkage and fluctuates mostly based on statements from US President Donald Trump, his aides and like-minded think tanks about the conflict in Iran. Pakistan’s oil imports, more than 95 per cent, originate from the Middle East. Most of its transportation took place via the troubled Strait of Hormuz, notwithstanding a few alternative routes of late, and is linked to Dubai-based Middle East pricing, which currently stands at $135 per barrel against $105 of Brent. Petrol and diesel are imported separately and their current Dubai prices stand at $120 and $168 per barrel, respectively. Informed sources also told Dawn that the government had barred oil refineries from exporting furnace oil and naphtha to create a buffer for power generation, given the suspension of liquefied natural gas (LNG) imports from Qatar, which declared forced majeure last week after its processing facilities came under attack by Iran. They said the gas supply to fertiliser plants was being closed and gas rationing would be revived after Eidul Fitr to minimise electricity load shedding as temperatures rise and to conserve foreign exchange reserves. The sources said that while current petrol and diesel stocks were sufficient for 22-23 days, diesel supplies could face challenges as more than 20 days were required for its import transportation from alternative sources and routes, while Saudi Arabia was extending maximum support and could provide crude supplies for maximum utilisation of local refineries for HSD production. Even then, very large crude carriers (VLCC) rates have jumped around 15 times and cannot reach Pakistani ports. At best, they can anchor in Oman from where feeder ships could carry crude to local ports. On the positive side, liquefied petroleum gas supplies from informal channels from Iran have almost doubled since the Iran war broke out apparently because of cash needs across the border and supply challenges in formal channels.
DawnMarch 12, 2026 at 05:25 PM UTC