Finance Ministry denies ‘petrol hike claims’ as Pakistan monitors global oil market

• Ministry clarifies Finance Minister Muhammad Aurangzeb made no statement on further fuel price increase

• Says minister only briefed Senate committee on rising global oil costs, but domestic petrol rates remain unchanged

• Opposition warns fuel hike could worsen inflation and poverty, JI terms move ‘unacceptable’

 ISLAMABAD: The Ministry of Finance on Thursday strongly rebutted reports suggesting a further increase in petrol prices, clarifying that Finance Minister Muhammad Aurangzeb made no statement on raising fuel rates in Pakistan.

In an official statement, the ministry said Minister Aurangzeb briefed the Senate Standing Committee on Finance but did not comment on any new hikes in petroleum prices. “Reports circulating on television channels suggesting otherwise are inaccurate,” the statement said.

While briefing the committee, the minister discussed rising trends in global oil prices but did not announce any decision to increase petrol rates domestically, the ministry added. The clarification comes amid widespread media speculation over potential adjustments, as Pakistan closely monitors global market fluctuations.

The government recently increased petrol and diesel prices by Rs55 per litre, citing surging international oil costs linked to escalating tensions in the Middle East. Under the revised rates, petrol now costs Rs321.17 per litre, while diesel has risen from Rs275.70 to Rs335.86 per litre.

Minister Aurangzeb made the remarks while addressing the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwala. He noted that the government is implementing austerity measures under directions from Prime Minister Shehbaz Sharif but warned that petroleum prices could rise further due to regional developments and international market pressures.

A ministerial committee, he added, has been formed to monitor petroleum product prices and supply on a daily basis. “The situation in the region is changing moment by moment, so quick decisions are required regarding the purchase of petroleum products,” he said.

Aurangzeb also informed the committee that Qatar has declared force majeure amid the ongoing war situation, disrupting LNG imports. He noted that an LNG cargo that previously cost around $25 million is now being purchased for nearly $100 million.

The minister further said the government is considering shutting down six urea fertilizer plants due to surplus supply, as current stock levels exceed those of last year. He also highlighted that fuel rationing is being implemented in countries like Sri Lanka and Bangladesh, where the situation is reportedly more severe.

 Opposition voices concern over rising fuel costs

Meanwhile, opposition leaders strongly criticised the federal government over the massive increase in petroleum prices, warning that it could further drive inflation and deepen poverty.

In a statement on X, Jamaat-e-Islami chief Hafiz Naeemur Rehman called the hike “unacceptable,” arguing that when global oil prices had recently fallen to a five-year low, the government increased the petroleum levy instead of providing relief to citizens. With prices now rising again, he said, “the burden is once more being shifted onto the public.”