Amid a noticeable drop in global fuel prices, the Fake News Watchdog has released a comprehensive 38-page white paper sharply criticizing the Pakistani government’s decision to increase domestic fuel prices.
The report argues that the current prices of petroleum products in Pakistan are not only disconnected from international market trends but are also disproportionately inflated due to excessive and historically high taxation levels.
According to the white paper, Pakistanis are paying an unprecedented petroleum levy of Rs103 per litre, which significantly contributes to the inflated retail price of fuel. Drawing a comparison with historical figures, the report notes that back in the year 2000, crude oil was priced at USD 22 per barrel, and local petrol rates stood at Rs30 per litre.
In contrast, despite global crude oil currently being priced at around USD 69 per barrel, consumers in Pakistan are now paying a staggering Rs272 per litre — a situation the watchdog labels as economically unjustifiable and socially regressive.
The document also highlights that petroleum levy collections in the last fiscal year soared to Rs1.02 trillion, underscoring the significant financial burden placed on the general public. The report argues that this amount has effectively been extracted directly from citizens, making fuel pricing a serious governance and equity issue.
A major concern raised by the watchdog involves the deregulation of the petroleum sector, which the report calls “misleading.”
Although the Oil and Gas Regulatory Authority (OGRA) is tasked with recommending fuel prices, the actual pricing decisions, according to the watchdog, remain firmly in the hands of the federal government. This undermines the transparency and accountability that deregulation is supposed to bring.
In light of these findings, the Fake News Watchdog has called for strengthening OGRA’s autonomy. It recommends that the authority be given the power to independently determine fuel prices and publish a detailed pricing formula, allowing the public and independent auditors to scrutinize how final fuel rates are calculated.
The paper concludes by urging the government to realign domestic fuel pricing with international trends, reduce tax burdens on essential commodities, and restore public trust through transparency and regulatory reform.
