ISLAMABAD: The federal government on Friday announced a significant increase in fuel prices, raising the cost of both petrol and high-speed diesel by Rs55 per litre, citing soaring global oil prices triggered by escalating tensions in the Middle East.
The decision was announced during a press conference in Islamabad by Petroleum Minister Ali Pervaiz Malik alongside Deputy Prime Minister and Foreign Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb.
According to the revised rates, the price of petrol has increased from Rs266.17 to Rs321.17 per litre, while high-speed diesel has climbed from Rs280.86 to Rs335.86 per litre. The new prices will take effect from midnight.
Speaking at the briefing, Dar said the surge in prices was driven by a sharp rise in global petroleum costs following the ongoing conflict involving the United States, Israel and Iran. He noted that international fuel prices had increased by between 50 and 70 percent in recent weeks.
“In many countries, fuel prices automatically rise in line with global markets,” Dar said, adding that Pakistan had delayed the adjustment for weeks while closely monitoring the situation.
He explained that Prime Minister Shehbaz Sharif had been carefully reviewing the evolving global scenario over the past two to three weeks.
A permanent committee led by Malik and Aurangzeb had been regularly assessing the impact of the international oil market on domestic prices, he added.
Dar said the government later formed a special committee under his leadership to review the situation and recommend appropriate measures.
Malik described the current circumstances as “extraordinary,” saying global fuel prices had surged dramatically due to geopolitical tensions. He added that the government had maintained petroleum reserves in recent weeks to ensure a steady supply across the country despite market volatility.
“Over the past few weeks, we safeguarded our reserves and managed supply according to available stocks to prevent disruptions,” Malik said.
He warned that authorities would take strict action against individuals or businesses attempting to hoard fuel or halt sales to generate illegal profits. “Action will be taken against those who stop selling petrol to gain undue advantage,” he said.
The petroleum minister acknowledged that the increase was a difficult but necessary decision given the unprecedented rise in international prices.
Officials also announced that fuel prices would now be reviewed on a weekly basis instead of the previous fortnightly schedule. Malik said the government would lower prices as soon as global markets stabilise.
The adjustment comes amid growing concerns over energy supply routes after the strategic Strait of Hormuz faced disruptions due to the ongoing regional conflict, affecting a major share of global oil shipments.
