The federal government has opted to keep petrol prices unchanged for the next fortnight, holding the rate at 275 rupees per liter, according to a notification issued by the Finance Division late Monday.
The decision arrives as global oil benchmarks show signs of cooling, providing a rare window of stability for a domestic market battered by high inflation. Officials in the Finance Division, speaking on condition of anonymity, indicated that the decision was driven by a need to maintain the current tax collection trajectory rather than providing immediate relief at the pump.
“We have to balance the revenue targets set under the current IMF program with the capacity of the consumer,” one official said. “Any reduction right now would have created a shortfall we aren’t prepared to bridge.”
This decision leaves the price of High-Speed Diesel (HSD) steady at 282 rupees per liter.
For the average motorist, the news is a reprieve from the volatility seen earlier this quarter. However, the lack of a price cut has drawn criticism from transport unions. They argue that the government’s reliance on petroleum levies to shore up the national budget is stifling logistics and pushing up the cost of essential goods across the country.
Independent energy analysts point out that international crude prices have fluctuated within a narrow band over the last two weeks, giving the government the fiscal space to either pass on a small cut or increase the levy. By choosing the status quo, the government has prioritized its primary surplus targets.
With the new prices effective from midnight, the government’s focus now shifts to the upcoming budget review in August. Whether the administration can maintain these prices without further straining the public remains the central question for the weeks ahead.
