Petroleum prices kept unchanged to make space for tariff cut

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ISLAMABAD: The government on Saturday dec­ided to keep the petroleum prices unchanged, contr­ary to expectations they wo­uld fall by up to Rs14 per litre for the next two weeks due to fluctuations in the international market.

Prime Minister Shehbaz Sharif decided to use the extra fiscal space to reduce electricity tariffs.

An official statement released on Saturday said the government had deci­ded to keep the prices unchanged.

The prime minister has decided to use the added revenue to reduce electricity tariffs, the statement added, signalling a major relief for the public in coming days.

The per litre price of petrol will remain at Rs255.63.

The prices of high-speed diesel, light diesel oil and kerosene will remain at Rs258.64, Rs153.34 and Rs168.13, respectively.

The calculations submitted to the petroleum division by the industry a few days back proposed a cut of up to Rs14.16 per litre in petroleum prices in line with the trend in the global market.

The ex-depot price of petrol was estimated to drop by Rs14.16 per litre and that of diesel by Rs8.70.

A cut of Rs10.33 per litre was calculated for the price of kerosene and Rs7.12 for light diesel oil.

The PM office statement highlighted that the move was part of a broader strategy to ease the burden on consumers struggling with high utility costs.

“We have decided to maintain fuel prices at the existing level and pass on the entire financial benefit to electricity tariffs,” the prime minister said.

The statement added that a formal announcement on the details of the relief package is expected soon.

The PM is likely to announce these relief measures in his address to the nation in the coming weeks.

The statement added that a detailed plan to lower electricity prices was in the final stages, with officials working on a structured relief package.

He emphasised that this initiative, coupled with other measures, would bring about a “meaningful reduction” in power tariffs.

PM Shehbaz stressed that the reduction in electricity costs would have a ripple effect on inflation, potentially easing price pressures across the economy.

“Lower power tariffs will not only benefit consumers directly but will also help in curbing overall inflation.”

The PM added that since coming to power last year, his government has prioritised public relief.

He reaffirmed the commitment to providing further relief to the masses in the coming weeks.

Published in Dawn, March 16th, 2025

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