In Islamabad, the government is expected to announce new petroleum prices today, with reports suggesting a significant increase in fuel rates. According to sources, a summary has been sent to the federal government proposing a rise of Rs29 per liter in petrol prices and Rs49 per liter in diesel prices. The final decision will be made by Shehbaz Sharif.

Officials revealed that on March 14, the government chose to maintain fuel prices for one week, absorbing a financial burden of Rs23 billion. This move prevented a sharp increase of Rs49.63 per liter in petrol and Rs75.05 per liter in diesel at that time. The cost was managed through price differential claims to provide temporary relief to consumers.

Sources indicate that the government may again consider maintaining current prices for the coming week by continuing to bear the financial burden. However, rising fiscal pressure makes a price hike increasingly likely.

Currently taxes make up a significant portion of fuel prices. Petrol includes Rs121.77 per liter in taxes, accounting for about 38 percent of its price, while diesel carries Rs73.42 per liter in taxes around 22 percent. Additional charges include customs duties and petroleum and climate support levies.