Govt weighs ending fuel price freeze as kerosene rises 127%, JP-1 up 150% in March

The government is considering lifting the freeze on petrol and diesel prices as global energy trends push up domestic costs, while evaluating targeted subsidies for two- and three-wheelers, Dawn reported. 

The review comes amid sharp increases in other petroleum products, with jet fuel (JP-1) and kerosene prices rising significantly in recent weeks without formal announcement.

Official data shows JP-1 prices increased by Rs84 per litre, or 21.65%, to Rs472 from Rs388 effective March 21. Since the start of the month, jet fuel prices have surged by around 150% from Rs190 per litre.

Kerosene prices also rose by Rs71 per litre, or about 20%, to Rs429 from Rs358 within a week, with an overall increase of 127% since early March, reflecting global market movements.

In contrast, petrol and high-speed diesel prices have remained unchanged after an earlier increase of Rs55 per litre each, with the government allocating around Rs69 billion in subsidies to offset further adjustments.

Officials said the state is currently absorbing approximately Rs175 per litre in diesel costs and about Rs75 per litre in petrol, adding that maintaining the price freeze over an extended period may not be sustainable.

The issue was discussed at a meeting of a cabinet committee tasked with monitoring petroleum prices and energy supply conditions amid global volatility.

Authorities are reviewing price differences between international and domestic markets and considering shifting from broad price controls to targeted subsidies for specific segments, particularly two- and three-wheeler users.