A petition has been filed in the Lahore High Court challenging the recent rise in prices of petroleum products and seeking quashing of the government notification.
The plea was filed by Azhar Siddique of the Judicial Activism Panel, who argued that the government had increased petrol prices by Rs 55 per liter in what he termed as an illegal and anti-public move.
According to the petition, the increase in oil prices will lead to an increase in transportation costs, electricity tariffs, agricultural expenses and prices of essential foodstuffs, which will place an additional burden on the population. The petitioner further stated that oil marketing companies already have stocks of petroleum products for 15 days and increasing prices despite existing reserves is illegal.
Read: The Government will fully pass on the increase in the price of oil to consumers
He asked the court to direct the Oil and Gas Regulatory Authority and the Ministry of Energy to submit before the court details of 15 days’ worth of oil reserves available.
The plea urged the high court to declare the notification regarding the increase in oil prices void. The price increase comes amid rising 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 driven 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 on Friday sharply increased petrol and high-speed diesel prices by Rs 55 per litre, 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 following approval by Prime Minister Shehbaz Sharif. The new price of petrol has been fixed at Rs 321 per litre, while high-speed diesel has been increased to Rs 336 per litre.
The government also revised the petroleum tax structure, increasing the tax on petrol to a record Rs 105.4 per litre, while reducing it to Rs 55 per liter on diesel, in an effort to ease the burden on the transport and agriculture sectors that rely heavily on diesel.
Read more: Gasoline pumps could close within days as dealers warn of supply outages
Also, the price of kerosene increased by Rs 130 per liter to Rs 319, while light diesel increased by Rs 68 to Rs 235 per liter, reflecting the rise in international fuel prices.
Officials said global oil markets have seen strong volatility amid rising tensions in the Middle East, with crude prices hitting their highest levels in two years. According to Malik, the average price of gasoline at Platts rose from $78 to about $107 per barrel in six days, while diesel rose from $88 to nearly $150 per barrel during the same period.
The government said the price adjustments were necessary to ensure continued availability of fuel in the country amid supply disruptions and rising import costs. Authorities are also monitoring global markets and reviewing oil prices weekly as the situation evolves.
