The federal government has increased the prices of petrol and high speed diesel by Rs55 per litre, citing rising global oil prices triggered by escalating tensions in the Middle East. The announcement was made during a press conference in Islamabad by Petroleum Minister Ali Pervaiz Malik, alongside Deputy Prime Minister and Foreign Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb.
Following the increase, the ex depot price of petrol has risen to Rs321.17 per litre, while high speed diesel now costs Rs335.86 per litre. The revised rates took effect from midnight after the government finalized the decision.
Officials said the move was necessary to maintain the supply of petroleum products in the country and to respond to the sharp rise in international oil prices.
Middle East Conflict Pushes Global Oil Prices Higher
Government officials linked the price hike directly to the ongoing conflict involving Iran, the United States and Israel, which has shaken global energy markets.
Speaking at the press conference, Ishaq Dar said the war in the region had caused a dramatic increase in global fuel prices.
“There has been an increase of 50 per cent to 70pc in various products,” he said while explaining the government’s decision.
Dar added that petroleum prices in many countries had already risen automatically due to global market pressures. He said Pakistan had delayed the increase for several weeks while carefully reviewing the situation.
Government Tried to Minimize Impact on Consumers
Officials said the government had held multiple meetings over the past two to three weeks to assess the international situation and determine the best course of action.
Dar explained that a committee headed by him and including the petroleum and finance ministers reviewed the developments and consulted relevant stakeholders before finalizing the decision.
“Our objective was to pass the minimum effect to the end consumer,” he said.
Finance Minister Muhammad Aurangzeb also noted that the government had been conducting daily meetings to monitor the impact of the Middle East crisis on Pakistan’s economy and energy supply.
Concerns Over Energy Supply Routes
Petroleum Minister Ali Pervaiz Malik warned that the conflict in the region had created unusual circumstances for Pakistan and other countries that rely heavily on imported oil.
“The fire that ignited in our neighbourhood has engulfed the entire region,” he said.
He highlighted concerns about disruptions in global shipping routes, particularly around the Strait of Hormuz, through which a large portion of the world’s oil supply passes.
To ensure uninterrupted supply, the government has also begun exploring alternative energy routes and shipments. Malik said two Pakistan National Shipping Corporation vessels were heading toward Yanbu and Fujairah ports to secure fuel supplies for the country.
Saudi Arabia has also assured Pakistan of continued support in maintaining oil supply through alternative arrangements.
Prices to Be Reviewed Weekly
The government has indicated that petroleum prices may now be reviewed on a weekly basis instead of the traditional fortnightly mechanism due to the rapidly changing global situation.
Officials said the price increase was a difficult decision but necessary to avoid shortages and ensure the smooth availability of fuel in Pakistan.
They also assured that if global prices stabilize or decline, domestic prices would be revised accordingly.
