ISLAMABAD: The federal government is considering reviving austerity measures as renewed Middle East tensions have increased pressure on global oil prices. The Brent crude oil today crossed $90 a barrel. Growing oil prices would, indeed, put pressure on the Pakistan’s foreign exchange reserves.
According to the officials, the federal cabinet could review the proposal soon after Prime Minister Shehbaz Sharif discussed the issue during recent meetings.
Daily pricing system remains unchanged
Meanwhile, the government has clarified that the recent shift to daily petroleum price notifications does not mean fuel prices have been deregulated. Retail prices for petrol and high-speed diesel will be announced only on working days, from Monday to Friday. Therefore, prices announced on Friday will remain effective until Monday.
Officials said the Oil and Gas Regulatory Authority (Ogra) will continue calculating prices daily before sending recommendations to the Petroleum Division. The division will then issue the official notification each working day. Additionally, Ogra will publish pricing details on its website to improve transparency.
Government retains pricing authority
Officials stressed that the government still controls fuel pricing and taxation. It will continue setting petroleum levy, climate levy, customs duty, dealer margins and freight equalisation charges. Currently, government taxes and margins total about Rs110 per litre on petrol and Rs96 per litre on diesel.
Officials warned that complete deregulation of oil prices could affect local refineries, fuel dealers and consumers, especially in remote areas in Pakistan.
