A petition has been filed in the Lahore High Court challenging the recent rise in oil prices and seeking annulment of the government’s notification.
The plea was filed by Azhar Siddique of the Judicial Activism Panel, who alleged that the government had hiked petrol prices by Rs55 per liter in what he called an illegal and anti-public move.
According to the petition, the rise in oil prices will lead to an increase in transport costs, electricity tariffs, agricultural expenditure and the prices of essential food items, which will put an additional burden on the public. The petitioner further argued that oil marketing companies already have a 15-day stock of petroleum products and it is illegal to increase prices despite the existing reserves.
Read: The government will pass on the oil price increase in full to consumers
He requested the court to direct the Oil and Gas Regulatory Authority and the Ministry of Energy to submit details of the available 15-day oil reserves to the court.
The plea called on the High Court to declare the notice of the increase in oil prices null and void. The price increase comes amid escalating tensions in the Middle East following the ongoing conflict involving the US, 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 nearly two years, prompting the government to adjust domestic oil prices to reflect rising import costs.
The government on Friday sharply hiked petrol and high-speed diesel prices by Rs55 per litre, marking the first in a series of expected adjustments as the ongoing regional conflict disrupts global oil supply chains.
Petroleum Minister Ali Pervaiz Malik announced the revised rates with immediate effect after the approval of Prime Minister Shehbaz Sharif. The new price of petrol was set at Rs 321 per litre, while high-speed diesel rose to Rs 336 per litre.
The government also revised the oil tax structure, increasing tax on petrol to a record Rs105.4 per liter while reducing it to Rs55 per liter on diesel in a bid to ease the burden on the transport and agriculture sectors, which are heavily dependent on diesel.
Read more: Petrol pumps may close within days as retailers warn of supply disruptions
Additionally, the price of kerosene oil was increased by Rs130 per liter to Rs319, while light diesel increased by Rs68 to Rs235 per liter, reflecting the rise in international fuel prices.
Officials said global oil markets have seen sharp volatility amid escalating tensions in the Middle East, with crude prices hitting their highest levels in two years. According to Malik, the average Platts price of gasoline rose from $78 to about $107 per gallon. barrel within six days, while diesel rose from $88 to nearly $150 a barrel. barrel in the same period.
The government said the price adjustments were necessary to ensure continued fuel availability in the country amid supply disruptions and rising import costs. Authorities are also monitoring global markets and reviewing oil prices on a weekly basis as the situation develops.
