Pakistan hikes petrol, diesel prices by Rs55 per litre amid Middle East tensions

Islamabad (Web Desk): Pakistan’s federal government has announced a significant rise in petroleum prices, increasing both petrol and high-speed diesel (HSD) by Rs55 per litre as mounting international oil prices continue to strain domestic energy costs.

The new prices have come into effect from 12am today (Saturday).

The surge in global prices has been attributed to escalating tensions involving the United States (US) and Israel with Iran, which have disrupted major energy supply routes.

Petroleum Minister Ali Pervaiz Malik announced the government’s decision during a press conference in the federal capital alongside Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb.

Following the revision, the price of petrol has increased from Rs266.17 per litre to Rs321.17, while the rate of high-speed diesel has climbed from Rs280.86 per litre to Rs335.86.

This adjustment represents the first weekly review of petroleum prices after escalating regional tensions threatened a major portion of global energy supply chains when Iran announced the closure of the Strait of Hormuz.

Previously, the government reviewed petroleum prices every two weeks.

The government has also modified the petroleum development levy. The levy on petrol has been raised from Rs84.40 per litre to Rs105, whereas the levy on high-speed diesel has been reduced from Rs76.21 to Rs55 per litre.

Speaking at the news conference, Malik stated that the decision had been taken after careful consideration of rapidly changing developments in international oil markets. He noted that the government would now examine fuel prices every week and would lower them as soon as conditions in the global market stabilise.

The minister said that the country was facing an extraordinary situation and explained that authorities had been safeguarding fuel reserves in recent weeks to ensure uninterrupted supply across the country.

Malik informed that petroleum stocks had been preserved and distribution maintained based on available reserves.

The Petroleum Minister also warned that strict measures would be taken against individuals or businesses involved in hoarding fuel or halting sales in order to generate illegal profits. He emphasised that some people had deliberately stopped selling petrol to benefit from anticipated price increases and said action would be taken against them.

Malik further remarked that international petrol and diesel prices had surged sharply, leaving the government with little choice but to implement the difficult decision to raise domestic fuel rates.

Addressing the presser, DPM Dar said that Prime Minister Shehbaz Sharif had earlier chaired a meeting to evaluate the evolving situation and explore potential policy responses. He said the premier was closely monitoring developments and was concerned about the implications of the crisis.

Dar added that the government was considering various options to manage the situation and determine the extent of price adjustments required.

Authorities, he said, were working to strike a balanced approach in responding to the crisis.

It is pertinent to mention that Pakistan has also approached Saudi Arabia to explore an alternative route for oil shipments after Iran’s decision to shut the Strait of Hormuz, which carries a significant share of the world’s oil trade.

The request was conveyed by Malik to the Saudi ambassador to Pakistan, Nawaf bin Said Al‑Malki, during a meeting held two days earlier.

According to the petroleum minister, Saudi officials assured Pakistan that oil deliveries could be arranged through the Red Sea port of Yanbu to help fulfil the country’s energy requirements.

Dar also mentioned that Pakistan had been engaging with foreign counterparts in efforts to ease tensions in the region. He said the government had contacted the foreign ministers of several countries and was working with international partners to encourage de-escalation.

However, he added that it remained uncertain how long the current tensions would persist and how quickly the situation might stabilise.

Speaking on the occasion, Finance Minister Muhammad Aurangzeb said that the government was carefully analysing how the increase in global oil prices might affect Pakistan’s trade flows, particularly imports and exports. He stated that officials were reviewing the potential economic consequences before deciding on further measures.

The finance minister reassured the public that Pakistan currently possessed sufficient petroleum reserves and urged citizens not to panic.

Aurangzeb also noted that Prime Minister Shehbaz Sharif had instructed federal authorities to consult with provincial leadership to ensure coordination and a unified response to the evolving situation.