Pakistan sharply increased fuel prices this week, even as the energy crisis continues to ripple across continents amid the ongoing US-Iran war, now in its second month.Petroleum minister Ali Pervaiz Malik on Thursday raised petrol prices by PKR 137.24 ( ₹45.6 or $0.49) to PKR 458.4 per litre ( ₹152.6 or $1.65), a hike of 43 per cent; while diesel prices were raised by PKR 184.49 per litre ( ₹61.42 or $0.66) to PKR 520.35 per litre ( ₹173.23 or $1.87), a rise of 55 per cent, the Dawn reported.
Islamabad sources the majority of its crude oil—specifically about 80 percent—from the Dubai and Oman markets, where prices have surged to record levels because of the ongoing war.The government also announced a hike of PKR 34, to 457.80 per litre, in kerosene prices, at the same time offering a subsidy on two-wheelers.
Increase implemented despite mediation requirement
The increase in fuel prices comes at a time when Islamabad is acting as a mediator in the conflict and has recently hosted a meeting of Gulf states’ foreign ministers to push for an early end to the war. Pakistan had previously raised fuel prices on March 6, shortly after the conflict in West Asia began on February 28.
Protest in Pakistani cities, modest relief
The decision to increase fuel prices triggered immediate protests from residents in multiple cities, including Rawalpindi and Islamabad, after which Pakistan’s Prime Minister Shehbaz Sharif announced a reduction in petrol prices.
A day after the steep hike was announced, Sharif in a midnight address announced that the government has reduced petrol levy by PKR 80 per litre. The revised rate for petrol was PKR 378 per litre, down from the hiked PKR 458.41 per litre.
"I am announcing an immediate reduction of PKR 80 per litre in petrol levy," Sharif said on Friday, adding that the new price will take effect from midnight. He further said that the petrol price would remain unchanged for at least one month.
Additionally, the Pakistani government has introduced relief measures, including a subsidy of PKR 100 per litre for motorcycle users, PKR 70,000 to 80,000 for goods transport vehicles, and PKR 100,000 for passenger vehicles.
