Petrol, diesel prices increased by Rs55 per litre in Pakistan

The government of Pakistan on Friday increased the prices of petrol and diesel by Rs55 per litre due to a sharp rise in global petroleum prices and the ongoing war situation in the Middle East, senior ministers said during a joint interaction with the media.

Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik discussed the situation and the government’s response to the rapidly changing global energy market.

Petroleum Minister Ali Pervaiz Malik said the prices of petrol and diesel had been increased by Rs55 per litre, adding that the government would bring prices back to their previous level once the situation improves. He assured that authorities are making every effort to ensure a stable supply of fuel across the country.

Dar said the recent escalation in the Middle East, particularly after the attack on Iran, has created a war-like situation in the region, pushing petroleum prices higher worldwide. He noted that the prices of various petroleum products have increased by 50 to 70 percent globally.

Dar said Prime Minister Shehbaz Sharif has formed a committee headed by him, comprising the finance and petroleum ministers, to review the petroleum pricing situation on a daily basis. He added that the prime minister himself has been holding meetings to closely monitor developments.

“Our efforts are to minimize the burden on the people despite the extraordinary circumstances,” Dar said, adding that the situation remains unstable and there is currently no clear timeline for improvement.

The deputy prime minister also said that Pakistan has been in contact with Middle Eastern and Gulf countries to monitor the evolving situation. He added that Prime Minister Shehbaz Sharif has held several conversations with his counterparts, while Syed Asim Munir is also in contact with military leadership in other countries regarding regional developments.

Finance Minister Muhammad Aurangzeb said energy prices are rising sharply across the world on a daily basis, adding that energy and Pakistan’s economy are closely interconnected. He said Pakistan currently remains in a relatively stable macroeconomic position and the government is taking steps to manage the situation.

Aurangzeb added that he would soon hold meetings with the chief ministers and chief secretaries of all four provinces to discuss the latest developments and ensure coordinated measures.

Petroleum Minister Ali Pervaiz Malik said the country had increased its fuel reserves in recent weeks to prepare for possible disruptions. He noted that on March 1, petrol was priced at $78 per barrel and diesel at $88 per barrel, but by March 6, petrol prices had surged to $106.80 per barrel, while diesel had reached nearly $150 per barrel in the international market.

He said Pakistan currently has sufficient reserves and the government has kept supply arrangements organized. Two ships carrying petroleum products are heading toward Yanbu Port and Port of Fujairah, while Saudi Aramco has also assured support by dispatching a large tanker carrying petroleum products.

Malik added that Prime Minister Shehbaz Sharif has taken strict notice of illegal profiteering and directed provincial authorities to take legal action against those involved.

“Given the extraordinary global circumstances, we were compelled to take the difficult decision of increasing prices,” the petroleum minister said.