Key Takeaways
- A petition has been filed challenging the latest fuel price hike and daily pricing mechanism.
- The government increased petrol prices by Rs. 5.44 and diesel by Rs. 31.05 within a week.
- Judicial Activism Panel Chairman Azhar Siddique argues that the new system violates constitutional provisions.
A petition has been filed in the Lahore High Court challenging the latest fuel price hike and the government's move towards daily fuel price adjustments. Judicial Activism Panel Chairman Azhar Siddique, who filed the petition, 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 and raised the price of high-speed diesel from Rs. 309.50 to Rs. 323.30 per litre, effective on July 11.
However, just one week later, another notification was issued, increasing petrol prices by an additional Rs. 5.44 to reach Rs. 316.15 per litre and raising diesel prices by Rs. 31.05 to Rs. 354.35 per litre.
The petition argues that the consecutive revisions indicate a shift towards daily or extremely short-cycle petroleum pricing, but claims the government has not publicly disclosed any legal framework, statutory formula, or transparent methodology supporting this new system.
Azhar Siddique stated in his petition: 'The executive decisions without parliamentary oversight are placing arbitrary financial burdens on citizens. Petroleum products play an essential role in transportation, agriculture, electricity generation and industrial production. Sudden increases in fuel prices can trigger wider inflation across the economy.'
The plea further contends that rising costs place an unbearable burden on consumers, farmers, transporters, traders, and small businesses.
According to reports published by several national media organizations, the move towards daily or short-term pricing has caused widespread public concern. 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 but has not disclosed the key components used to calculate the final prices.
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.
The petition argues that questions remain over the legality, transparency, and fairness of the existing petroleum pricing system.
'The executive decisions without parliamentary oversight are placing arbitrary financial burdens on citizens.'
Azhar Siddique, Judicial Activism Panel Chairman
