Lahore High Court seeks fuel pricing mechanism after Rs55 per litre hike

The Lahore High Court (LHC) has sought details of the mechanism used to determine petroleum prices while hearing a petition challenging the recent increase in fuel prices across the country.

Justice Khalid Ishaq heard the miscellaneous petition filed against the government’s decision to raise petrol and high-speed diesel prices by Rs55 per litre.

During the hearing, the petitioner’s counsel argued that the increase was disproportionate to movements in international oil markets.

The counsel contended that global petroleum prices had increased by only four to 5%, while domestic fuel prices were raised by up to 20%. The petition further argued that the decision violates several constitutional provisions, including Articles 4, 9, 14, 18, 25, 37 and 38 of the Constitution.

The court directed the relevant authorities to provide details of the formula and mechanism used for fixing petroleum product prices.

The federal government had announced the Rs55 per litre increase in petrol and diesel prices on Saturday, making the revised rates effective nationwide from March 7. The price revision came amid rising global oil prices following the escalation of conflict in the Middle East.

Separately, the government on Monday introduced a series of austerity measures aimed at conserving fuel and reducing public expenditure as international crude oil prices crossed $100 per barrel.

Under the plan, fuel allowances for official vehicles will be reduced by 50% for two months, while ambulances and public transport buses have been exempted.

Government departments have been directed to suspend the use of 60% of their official vehicles during this period.

Members of the federal cabinet will not draw salaries, while the salaries of parliamentarians will be reduced by 25%.

Senior officials in grades BS-20 and above earning more than Rs300,000 per month will contribute two days’ salary toward relief measures.

The government has also ordered a 20% reduction in departmental expenditures and suspended purchases of vehicles, furniture and air conditioners for government offices.

In addition, ministers, advisers and government officials have been barred from undertaking foreign visits except in cases considered essential for national interests.

Officials said the measures are intended to manage the impact of rising oil prices and conserve fuel consumption amid the ongoing global energy uncertainty.