The Lahore High Court (LHC) on Monday issued notices to the federal government and the Oil and Gas Regulatory Authority (Ogra) on a petition challenging the recent increase in petroleum prices.
Justice Khalid Ishaq heard the petition filed by the Judicial Activism Panel, which questioned the government’s decision to raise fuel prices amid the ongoing conflict involving the United States, Israel and Iran.
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During the hearing in Lahore, the court also directed the authorities to submit details of the mechanism used to determine petroleum prices in Pakistan. The petitioner’s counsel, Azhar Siddique, argued that the government raised petroleum prices despite the country having sufficient reserves for about 28 days. He said petrol and diesel prices had been increased by around Rs55 per litre, setting petrol at Rs321.17 and high-speed diesel at Rs335.86 per litre.
According to the counsel, international oil prices had increased by only about four percent, while the domestic price adjustment in Pakistan amounted to nearly 20 percent. Siddique further stated that under existing regulations, oil marketing companies are required to maintain strategic petroleum reserves equivalent to at least 15 days of national consumption. He argued that the fuel currently available in the market had been purchased earlier at lower international prices and was already part of existing stock.
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The lawyer contended that applying the higher prices to previously purchased fuel stocks would lead to unjust enrichment for oil companies and place an unfair burden on consumers. He also criticised what he described as a regulatory failure by Ogra and the energy ministry, adding that there was no clear mechanism publicly available for determining petroleum prices. After hearing the arguments, the court adjourned proceedings until March 25 and directed the respondents to submit written replies explaining the pricing mechanism and the basis for the recent increase.