Former Finance Minister Miftah Ismail, in a post on X, said the government effectively turned a potential reduction in fuel prices into a fresh price hike, despite a fall in international cost indicators.

He explained that the ex-refinery price of imported petrol actually declined by Rs 3.14 per litre. However, instead of passing this benefit on to consumers, the government increased other components of the pricing structure, including a sharp rise in freight charges and a higher petroleum levy of around Rs 27 per litre, which ultimately pushed retail prices upward.

A similar pattern, according to his analysis, was seen in diesel pricing. While the ex-refinery cost fell by Rs 3.44 per litre, higher freight adjustments—reported in some calculations at up to Rs 37 per litre—combined with additional charges resulted in an overall increase of about Rs 27 per litre at the consumer level.

Miftah argued that despite a decline in underlying fuel costs, adjustments in taxes and logistics-related charges fully absorbed any potential relief for consumers. He further suggested that the existing pricing mechanism no longer reflects market realities, as it continues to allow policy-driven increases to outweigh global price movements.

He concluded that this structure effectively prevents international price reductions from being fully passed on to domestic fuel users, keeping retail prices elevated even when base costs fall.