Pakistan Government Faces Criticism for Keeping Fuel Prices Unchanged Despite Global Oil Price Drop

Islamabad: The federal government is facing criticism after deciding to keep petrol and high-speed diesel prices unchanged despite a decline in international crude oil prices, with opposition leaders and critics accusing it of failing to pass on the full benefit to consumers.

Prime Minister Shehbaz Sharif had earlier stated that any reduction in global oil prices would be passed on to the public in full. However, under the latest fortnightly price review, the government maintained the price of petrol at Rs299.50 per litre and high-speed diesel at Rs311.47 per litre.

Critics argue that despite lower international crude prices, consumers are not receiving adequate relief and continue to bear the burden of high transport costs and inflation. They also allege that the pricing mechanism benefits oil marketing companies while ordinary citizens see little advantage.

The Jamaat-e-Islami and the Supreme Court Bar Association have criticized the government’s petroleum pricing policy, alleging that the Petroleum Development Levy (PDL) has become an excessive financial burden on the public.

Responding to the criticism, Petroleum Minister Ali Pervaiz Malik defended the government’s decision, sharing international oil price charts on social media. He said the government was not favoring any particular sector and was making pricing decisions while honoring Pakistan’s international commitments.

The minister added that the government remains committed to passing on every possible benefit to consumers within its fiscal and international obligations. He also highlighted that, under Prime Minister Shehbaz Sharif, diesel prices have been reduced by up to Rs200 per litre and petrol prices by Rs155 per litre from previous peak levels.

Former Sindh Governor Muhammad Zubair questioned why petrol continues to sell at nearly Rs300 per litre despite global oil prices returning to pre-conflict levels, asking who is benefiting from the difference instead of consumers.

Pakistan Tehreek-e-Insaf (PTI) leader Haleem Adil Sheikh also criticized the government’s policy, claiming that while global crude oil prices have fallen to around $72 per barrel, consumers in Pakistan have not received corresponding relief. He alleged that previous pricing decisions had allowed oil companies to earn substantial profits at the public’s expense.

Journalist Zahid Gishkori echoed public frustration, saying oil companies, tanker operators, and major dealers appeared to be benefiting while consumers continued to bear the cost.

The debate follows a recent dispute between the government and Pakistan’s oil marketing companies over the pricing mechanism. Oil marketing companies and refineries claimed that the Oil and Gas Regulatory Authority (OGRA) had miscalculated international prices, resulting in larger-than-expected reductions in petrol and diesel prices that placed financial pressure on the industry. OGRA has not yet publicly responded to those allegations.

The government has maintained that it is proceeding cautiously in light of global market uncertainty and geopolitical risks, while many consumers continue to call for lower fuel prices.