Govt to pay Rs23bn to keep petrol, diesel prices unchanged

March 15, 2026 (MLN): The government has decided to keep the prices of petrol and high-speed diesel unchanged from March 14, 2026, while absorbing the increase through subsidies despite a sharp rise in international oil prices, according to a notification issued by the Ministry of Energy (Petroleum Division).

As per the decision approved by the Prime Minister, the government will pay a price differential of Rs49.63 per litre on motor spirit (petrol) and Rs75.05 per litre on high-speed diesel to oil marketing companies through the Oil and Gas Regulatory Authority to maintain existing consumer prices.

According to the price buildup, the average Platts price with incidentals and duty increased significantly during the latest review period. 

For petrol, the benchmark price rose to Rs237.82 per litre on March 14 from Rs190.94 on March 7, while for high-speed diesel it surged to Rs330.19 per litre from Rs257.78, reflecting increases of Rs46.89 and Rs72.41 per litre respectively.

Despite this surge, the ex-depot prices of petrol and diesel have been kept unchanged at Rs321.17 per litre and Rs335.86 per litre, respectively.

The estimated price differential claims of oil marketing companies for the period from March 14 to March 20, 2026 amount to around Rs23 billion, which will be paid through OGRA.

To finance the subsidy, the Finance Division of Pakistan has secured cabinet approval for the creation of the “Prime Minister’s Austerity Fund” with an allocation of Rs27.1bn, out of which Rs23bn will be transferred to OGRA for settlement of the claims.

The mechanism for payment of the price differential claims, to be developed by OGRA, will also include verification and audit of invoices submitted by oil marketing companies.

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