Latest Fuel Price Hike and Daily Pricing Plan Challenged in Lahore High Court

A petition has been filed in the Lahore High Court against the latest increase in petroleum prices and the government’s move towards daily fuel price adjustments.

Judicial Activism Panel Chairman Azhar Siddique filed the petition. He raised legal objections to the new mechanism being used to determine petroleum prices over extremely short periods.

According to the petition, the Ministry of Energy’s Petroleum Division revised fuel prices through a notification issued on July 10.

The government increased the price of petrol from Rs. 297.53 to Rs. 310.71 per litre. It also raised the price of high-speed diesel from Rs. 309.50 to Rs. 323.30 per litre. The revised rates took effect on July 11.

However, the Petroleum Division issued another notification just one week later.

Under the second notification, petrol became Rs. 5.44 more expensive and reached Rs. 316.15 per litre. Meanwhile, diesel increased by Rs. 31.05 to Rs. 354.35 per litre.

Daily Fuel Pricing Mechanism Challenged

The petition argues that the consecutive revisions indicate a shift towards daily or extremely short-cycle petroleum pricing.

However, it claims the government has not publicly disclosed any legal framework, statutory formula or transparent methodology supporting the new system.

The plea further contends that the pricing mechanism violates several constitutional provisions. It argues that executive decisions without parliamentary oversight are placing arbitrary financial burdens on citizens.

The petition states that petroleum products play an essential role in transportation, agriculture, electricity generation and industrial production.

Therefore, sudden increases in fuel prices can trigger wider inflation across the economy.

According to the plea, the rising costs place an unbearable burden on consumers, farmers, transporters, traders and small businesses.

Government Accused of Increasing Fuel Levies

The petition also alleges that the government has significantly increased the Petroleum Development Levy and Climate Support Levy under the cover of petroleum price revisions.

However, it claims the authorities have not disclosed the key components used to calculate the final prices.

Citing reports published by several national media organizations, the petition says the move towards daily or short-term pricing has caused widespread public concern.

It argues that questions remain over the legality, transparency and fairness of the existing petroleum pricing system.

Court Asked to Suspend July 17 Notification

The Judicial Activism Panel has asked the Lahore High Court to suspend the petroleum price notification issued on July 17.

It has also requested the court to direct the government to stop making ad hoc fuel price revisions lasting only one or three days.

In addition, the petition seeks an order requiring the government to disclose the complete petroleum pricing formula and the legal basis used to calculate fuel prices.