LEGAL
A legal challenge has been filed in the Lahore High Court (LHC) contesting the recent government decision to increase petroleum product prices by Rs55 per litre.
The petition, submitted by Azhar Siddique of the Judicial Activism Panel, describes the price hike as an “unlawful and anti-public” move. Siddique argued that the increase would trigger a sharp rise in transportation costs, electricity tariffs, agricultural expenses, and prices of essential food items, imposing a significant burden on the public.
According to the plea, oil marketing companies already maintain a 15-day stock of petroleum products, and the price increase despite existing reserves is illegal. The petitioner requested the court to direct the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Energy to provide full details of the available petroleum reserves.
The petition seeks a declaration from the high court nullifying the government notification on the price increase.
The hike comes amid escalating tensions in the Middle East following the ongoing conflict involving the United States, Israel, and Iran, which has disrupted global energy supply chains. Attacks on energy infrastructure and the closure of the strategic Strait of Hormuz have pushed international crude prices to nearly a two-year high, prompting the government to adjust domestic fuel rates to cover rising import costs.
Following the increase, the government announced the revised prices effective immediately: petrol is now Rs321 per litre, while high-speed diesel has risen to Rs336 per litre. The petroleum levy structure was also revised, with petrol levy increasing to a record Rs105.4 per litre and diesel levy reduced to Rs55 per litre to partially ease the burden on the transport and agriculture sectors.
Other petroleum products saw sharp increases as well, with kerosene oil rising by Rs130 per litre to Rs319 and light diesel oil increasing by Rs68 to Rs235 per litre.
Officials noted that global oil markets have been highly volatile amid the Middle East crisis, with average Platts prices for petrol rising from $78 to $107 per barrel, and diesel surging from $88 to nearly $150 per barrel in just six days.
The government stated that the adjustments were essential to maintain fuel availability in the country during supply disruptions and continues to review petroleum pricing on a weekly basis in response to global market developments.