Petrol price hike challenged in LHC as petition seeks suspension of govt notification

LAHORE: A petition has been filed in the Lahore High Court challenging the recent sharp increase in petroleum prices and seeking the annulment of the government’s notification raising fuel rates.

The plea was submitted by advocate Azhar Siddique of the Judicial Activism Panel, who argued that the government’s decision to raise petrol prices by Rs55 per litre was unlawful and against the public interest.

According to the petition, the hike in petroleum prices would trigger a significant increase in transportation costs, electricity tariffs, agricultural expenses, and the prices of essential commodities, thereby placing an additional financial burden on the public.

The petitioner also contended that oil marketing companies currently hold a 15-day stock of petroleum products, and increasing prices despite the availability of these reserves was unjustified and illegal.

The plea requested the court to direct the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Energy (Pakistan) to submit details of the existing petroleum reserves before the court.

It further urged the high court to declare the government’s notification increasing petroleum prices null and void.

The price hike comes amid escalating tensions in the Middle East involving the United States, Israel and Iran, which have disrupted global energy supply chains.

The closure of the strategic Strait of Hormuz and attacks on regional energy infrastructure have pushed international crude oil prices to their highest levels in nearly two years, prompting the government to adjust domestic fuel prices.

On Friday, the government sharply increased petrol and high-speed diesel prices by Rs55 per litre following approval from Prime Minister Shehbaz Sharif.

Petroleum Minister Ali Pervaiz Malik announced that the new price of petrol had been set at Rs321 per litre, while high-speed diesel rose to Rs336 per litre.

The government also revised the petroleum levy structure, raising the levy on petrol to a record Rs105.4 per litre while reducing it to Rs55 per litre on diesel to ease the burden on the transport and agriculture sectors.

Additionally, kerosene oil prices were increased by Rs130 per litre to Rs319, while light diesel oil rose by Rs68 to Rs235 per litre, reflecting the surge in global fuel prices.

Officials say international oil markets have witnessed sharp volatility amid the Middle East conflict. According to the petroleum minister, the average Platts price of petrol jumped from $78 to about $107 per barrel within six days, while diesel surged from $88 to nearly $150 per barrel during the same period.

The government maintains that the price adjustments were necessary to ensure uninterrupted fuel supplies in the country amid rising import costs and global supply disruptions. Authorities are also monitoring international markets and reviewing petroleum prices on a weekly basis as the situation continues to evolve.