Govt blames Middle East war for fuel price shock, announces targeted relief measures

ISLAMABAD: Prime Minister’s Adviser on Political Affairs Rana Sanaullah on Friday attributed the sharp increase in petroleum prices to the ongoing conflict in the Middle East, saying the government had “nothing to do” with the surge driven by global market pressures.

His remarks came a day after the government announced an unprecedented hike of 43 per cent in petrol prices and 55pc in high-speed diesel (HSD), citing the impact of rising international oil prices amid the US-Israel war on Iran. The move drew strong criticism from opposition parties.

In a televised address, Sanaullah said such a steep increase in global petroleum prices had rarely been witnessed before, adding that Pakistan was inevitably affected.

“This rise is also hitting Pakistan, which is why we had to increase petrol and diesel prices,” he said, noting that the government had tried to shield the public by absorbing the impact for nearly three weeks at a cost of Rs129 billion.

He said Prime Minister Shehbaz Sharif held consultations with political leaders before deciding to shift from a blanket subsidy to a targeted relief package aimed at vulnerable segments.

Under the new measures, the government announced a Rs100 subsidy on petrol for motorcyclists and Rs1,500 per acre for farmers ahead of the harvesting season. Subsidies ranging from Rs70,000 to Rs100,000 were also allocated for transporters to prevent fare hikes and ease the burden on the public.

Sanaullah maintained that the government was making every effort to support citizens despite fiscal constraints, stressing that the price hike was an external shock linked to the war.

He criticised opposition parties for what he described as “propaganda” and urged them to support government efforts instead of inciting public protests.

Calling for unity, he warned that a prolonged conflict could worsen the situation, urging citizens to remain resilient in the face of economic challenges.

Separately, Defence Minister Khawaja Asif also linked the fuel price hike to the ongoing war, saying it was not a unilateral decision but a consequence of global disruptions affecting oil-producing and transit countries.

He noted that while several countries were facing fuel shortages, Pakistan had managed to maintain supply despite significant challenges. However, he said a price adjustment was necessary to avoid a deeper financial crisis.

Asif assured that both federal and provincial governments had curtailed development spending to manage the situation and pledged that relief would be provided once global conditions stabilise.