ISLAMABAD: The government has increased the price of kerosene oil by Rs40 per litre while approving a subsidy of Rs23 billion to maintain the existing prices of petrol and high-speed diesel (HSD) for the week ending March 20.
The decision aims to shield consumers from a sharp increase in the prices of the two most widely used fuels.
The prime minister approved keeping the prices of petrol and HSD unchanged despite a significant rise in international oil prices.
The price of kerosene has risen to Rs358 per litre, making it the most expensive consumer fuel currently available. The latest increase represents a rise of about 12.6 percent, pushing the cumulative increase in kerosene prices to nearly 90 percent compared with the rate of Rs188.87 per litre earlier this month.
The government will compensate oil marketing companies (OMCs) through a price differential subsidy.
The state will pay Rs75.05 per litre on high-speed diesel and Rs49.63 per litre on petrol to ensure that consumer prices remain unchanged during the specified period.
OGRA will also develop a mechanism to verify and audit the invoices submitted by oil marketing companies before releasing payments.
Kerosene is widely used by households in remote areas where liquefied petroleum gas (LPG) cylinders are not easily available.
However, authorities have noted that some traders previously misused kerosene by mixing it with petrol for profit due to the large price difference between the two fuels, a gap that has now been largely eliminated.
