Pakistan’s federal government has sharply increased petrol and diesel prices and announced a shift to weekly fuel price reviews amid rising global oil costs triggered by escalating tensions in the Middle East.
Speaking at a press conference in Islamabad, Petroleum Minister Ali Pervaiz Malik confirmed that petrol prices had been raised by Rs55 per litre, taking the new rate to Rs321.17 from Rs266.17. High-speed diesel prices were also increased by Rs55, bringing the new rate to Rs335.86 per litre from Rs280.86.
Read More: Fuel prices skyrocket as ME tensions weigh on markets
The minister said the government decided to revise prices after assessing developments in the international oil market, particularly the impact of the ongoing conflict involving the United States, Israel and Iran. The situation intensified after Iran announced the closure of the Strait of Hormuz, a crucial global energy route through which a significant share of the world’s oil supplies pass.
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Malik said that, in response to the volatile situation, the government would now review petroleum prices every week instead of the previous fortnightly schedule. He described the move as necessary under “extraordinary circumstances” and assured the public that prices would be reduced promptly if global rates decline.
The government has also adjusted the petroleum development levy. The levy on petrol has been increased to Rs105 per litre from Rs84.40, while the levy on diesel has been reduced to Rs55 per litre from Rs76.21.
Deputy Prime Minister Ishaq Dar said Prime Minister Shehbaz Sharif had chaired a high-level meeting to review the situation and explore policy options. He said the government was working to find a balanced solution while closely monitoring developments in the global market.
Read More: Government maintains fuel prices steady for next fifteen days
Meanwhile, Finance Minister Muhammad Aurangzeb reassured citizens that Pakistan currently has sufficient fuel reserves and urged the public not to panic.
Officials also revealed that Pakistan has sought alternative oil supply routes through Saudi Arabia’s Red Sea port of Yanbu to ensure uninterrupted energy supplies if regional tensions continue.