Pakistan has increased petrol and diesel prices by about 20% following a surge in global oil costs driven by the conflict in Iran, according to officials cited by Reuters.
Petroleum Minister Ali Pervaiz Malik announced a major price hike in a televised message, describing the decision as unavoidable.
“We have taken this decision under compulsion because of a sharp surge in petroleum prices globally,” Malik said, as reported by Reuters.
The government raised petrol prices by 55 rupees ($0.20 per litre) to 321.17 rupees, while diesel was increased to 335.86 rupees per litre, marking one of the largest adjustments in recent years, Reuters noted.
Inflation concerns for consumers
The price increase is expected to add pressure on inflation and affect Pakistan’s lower-income population, Reuters reported. Fuel costs typically influence transport fares and the prices of essential goods across the country.
Before the announcement, long queues were reported at fuel stations in major cities including Lahore and Karachi, according to Reuters.
Business owner Imran Hussain, who waited in line at a Lahore station, said he was preparing for possible shortages.
“I have been waiting for my turn for the last 70 minutes,” he told Reuters.
Government warns against hoarding
Prime Minister Shehbaz Sharif warned against fuel hoarding and said authorities would take action against anyone attempting to stockpile supplies, Reuters reported.
“We have sufficient petrol reserves. But we are planning to stretch them because we don’t know when the Middle East crises will end,” an official statement cited by Reuters said.
Oil imports and weekly review
Pakistan imports most of its crude oil from Saudi Arabia and the United Arab Emirates, primarily through the Strait of Hormuz, a key global energy transit route, according to Reuters.
The government said fuel prices will now be reviewed on a weekly basis, the oil ministry confirmed, as cited by the news outlet.
