Islamabad – Pakistan’s government announced a substantial increase in petrol and high-speed diesel prices on Friday, raising the cost of petrol by Rs55 per litre to Rs321.17 and diesel by Rs20 to Rs335.86 per litre. The move, effective Saturday, came just hours after assurances from Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb that the country’s petroleum reserves were adequate.
The price hike is a direct response to escalating global energy market volatility linked to regional conflicts, according to Petroleum Minister Ali Pervaiz Malik. “The fire that started in a neighbouring country has spread across the entire region,” Malik stated at a press conference alongside Deputy Prime Minister and Foreign Minister Ishaq Dar and Aurangzeb. The press conference was not followed by a question-and-answer session with journalists.
The government simultaneously adjusted the petroleum development levy (PDL) to partially mitigate the impact on diesel prices. The PDL on petrol was increased to approximately Rs105 per litre, although the levy on high-speed diesel was reduced to Rs57 per litre from Rs77.
Prior to the midnight implementation of the price increase, reports emerged of long queues forming at petrol pumps in several cities as consumers rushed to purchase fuel at the older, lower rates. Some fuel stations reportedly temporarily suspended sales to avoid dispensing fuel at the previous prices.
The government’s decision to raise prices comes as international crude oil futures climbed sharply on Friday. US crude oil futures rose by more than 12 percent, exceeding $90 per barrel, while international Brent crude increased by approximately 8 percent to $92 per barrel, nearing the $100 per barrel threshold, according to Reuters data.
Malik indicated that the government would now review petroleum prices on a weekly basis, responding to the volatile international market. “As soon as the situation improves internationally, we will reduce prices at the same speed,” he said.
Earlier in the day, the government had shelved a proposed national action plan designed to conserve fuel. The plan, which included measures such as work-from-home arrangements and distance learning, was deferred for at least a week, following a meeting chaired by Prime Minister Sharif. The meeting was informed that current petroleum reserves were sufficient to meet national demand.
The decision to postpone the conservation plan followed consultations with the International Monetary Fund (IMF), according to sources familiar with the discussions. The plan had been presented to the prime minister on Friday but was not forwarded to the Economic Coordination Committee (ECC) for formal approval.
Sharif directed provincial governments to take strict action against hoarding of petroleum products. He ordered the immediate sealing of any petrol pump found to be creating an artificial shortage, along with the cancellation of its license and the initiation of legal proceedings. He also directed the creation of a real-time dashboard to monitor the movement of petroleum products across the country, enabling data sharing with provinces.
In response to the federal government’s directives, the Punjab government ordered all deputy commissioners to launch an immediate crackdown on the hoarding of petroleum products. District administrations were instructed to enforce relevant laws strictly.
Pakistan relies heavily on oil supplies transported through the Strait of Hormuz, an area impacted by the ongoing regional conflict. The Petroleum Minister stated that two vessels belonging to the Pakistan National Shipping Corporation (PNSC) are currently en route via Yanbu and Fujairah, bypassing the Strait of Hormuz to ensure continued fuel supplies.
