Islamabad:The government has approved a new mechanism to prevent a possible massive increase of up to Rs50 per litre in petrol prices amid rising tensions between Iran and the United States.

Under the new formula, refineries will deposit the difference between the imported petrol price and the ex-refinery price into a government levy account.

The government will subsequently reduce the per-litre petroleum levy by an amount equivalent to the additional funds deposited by the refineries.

The new mechanism will remain effective for the next 30 days to help shield consumers from a sudden increase in petroleum prices.

The move comes amid concerns over international oil prices and potential disruptions in energy supplies due to escalating regional tensions.