A petition has been filed in the Lahore High Court challenging the recent increase in prices of petroleum products and seeking quashing of the government notification.
The plea was filed by Azhar Siddique of the Judicial Activism Committee, who argued that the government had increased petrol prices by Rs 55 per liter, which he termed as an illegal and anti-public move.
According to the petition, the increase in oil prices will lead to higher transportation costs, electricity tariffs, agricultural expenditures and prices of essential food items, thereby imposing additional burden on the public. The petitioner further claimed that oil marketing companies are already holding 15 days’ stock of petroleum products and it is illegal to increase prices despite existing reserves.
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He asked the court to order the Oil and Gas Regulatory Authority and the Ministry of Energy to submit details of oil reserves available for 15 days to the court.
The plea urged the High Court to declare the notification regarding the increase in oil prices null and void. The price rise 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.
The closure of the strategic Strait of Hormuz and attacks on energy infrastructure have pushed international crude oil prices to their highest levels in almost two years, prompting the government to adjust domestic oil prices to reflect rising import costs.
The government sharply hiked the prices of petrol and high-speed diesel by 55 rupees per liter on Friday, marking the first in a series of expected adjustments as the ongoing regional conflict disrupts global oil supply chains.
Oil Minister Ali Pervaiz Malik announced the revised rates with immediate effect after the approval of Prime Minister Shehbaz Sharif. The new price of petrol has been fixed at Rs 321 per liter, while high-speed diesel has gone up to Rs 336 per litre.
The government also revised the tax structure on petroleum, increasing the tax on petrol to a record high of Rs 105.4 per liter, while reducing it to Rs 55 per liter on diesel in a bid to ease the burden on transport and agriculture sectors which rely heavily on diesel.
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Besides, the price of kerosene increased by Rs 130 per liter to Rs 319, while the price of light diesel increased by Rs 68 to Rs 235 per liter, reflecting the surge in international fuel prices.
Officials said global oil markets saw high volatility amid escalating tensions in the Middle East, with crude prices hitting their highest levels in two years. According to Malik, the average price of gasoline in Platts increased from $78 to about $107 per barrel in six days, while the price of diesel increased from $88 to nearly $150 per barrel during the same period.
The government said the price adjustments were necessary to ensure the continued availability of fuel in the country amid supply disruptions and rising import costs. Authorities are also monitoring global markets and revising oil prices weekly as the situation evolves.
