Petrol jumps to Rs458.41, diesel to Rs520.35

The government on Thursday raised petrol price by Rs137.23 per litre to Rs458.41 and high-speed diesel by Rs184.49 per litre to Rs520.35, linking the increase to disruption in global energy markets caused by the Middle East conflict.

At a joint press conference, Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb said the latest revision followed a sharp rise in international oil prices and supply pressures after the United States and Israel launched strikes on Iran on February 28 and Tehran responded by effectively blocking the Strait of Hormuz and targeting refineries in the Gulf.

Malik said the government had tried to absorb the shock through austerity and expenditure cuts so that the burden did not fully fall on consumers. He said crude prices had climbed sharply, adding that diesel in international markets had crossed $250 per barrel.

He said oil supplies largely move through the Strait of Hormuz and noted that even countries with strategic reserves had declared energy emergencies. He added that the prime minister had formed a committee to take timely decisions to keep domestic fuel supplies uninterrupted.

Pakistan had first increased petrol and diesel prices by Rs55 per litre on March 6 after the crisis escalated. In the following three weekly reviews, however, the federal government left prices unchanged.

The petroleum minister said a meeting chaired by Prime Minister Shehbaz Sharif and attended by chief ministers concluded that blanket subsidies were no longer sustainable in the face of rising global prices. He said the government had therefore decided to focus support on vulnerable groups instead.

Aurangzeb said motorcyclists would receive a petrol subsidy of Rs100 per litre on up to 20 litres per month. He added that intercity public transport would get a diesel subsidy of Rs100 per litre.

He further said trucks and goods transport would receive fuel support of Rs70,000 per month, while railways would also be given a subsidy so fares could be managed. He said the government was also reviewing market timings across the country to conserve fuel and lower electricity generation costs, with a final decision to be taken after consultations with provincial governments.