The federal government is expected to absorb the upcoming Rs. 49 per litre hike in fuel prices to contain the impact from the Gulf war for one more week.
The government is likely to shield consumers by compensating oil marketing companies through price differential claims, reported a news daily. These payments will be disbursed to pump owners as compensation for the gap between international market rates and domestic retail prices.
So far, Dubai crude has reached $166.6 per barrel. Diesel prices are up $218.79 per barrel, while petrol climbed to $145.87 per barrel.
During last week’s fuel price review, the federal government increased the prices of kerosene oil and light diesel oil (LDO), while keeping petrol and high-speed diesel prices unchanged. It also maintained the petroleum levy at Rs. 105.37 per litre on petrol and Rs. 55.24 per litre on diesel.
To stabilize consumer prices, it approved a subsidy of Rs. 23 billion for the period from March 14 to March 20.
