Pakistan Sees Record Fuel Price Hike As Iran War‑Driven Global Oil Crisis Pushes Diesel To PKR 520.35 And Petrol To PKR 458.40 Per Litre

Pakistan on Thursday declared a steep rise in the price of diesel and petrol that became the second rise in fuel prices in the country in just a month. Diesel has increased by 54.9 percent to 520.35 Pakistani rupees to 1.88 US dollars per litre, and petrol has also gone up by 42.7 percent to 458.40 rupees per litre. The new rates will go into effect on Friday since the government cites the skyrocketing global oil prices emanating as a result of the current conflict in the Middle East as the major cause of action. Analysts are concerned that such a sharp growth will cause additional pressure on the already weak economy and affect the every day life of average citizens.

Pakistan Fuel Price Hike: Diesel To PKR 520.35 And Petrol To PKR 458.40 Per Litre

According to Petroleum Minister Ali Pervaiz Malik, the increase was inevitable because of the volatility of international crude prices. The international market prices had gone out of control and it was only natural to increase the prices after the US-Iran war, Malik said in a televised news conference with Finance Minister Muhammad Aurangzeb. Pakistan, which had already raised diesel and petrol prices by approximately 20 percent last month, cited a comparable rise in oil prices that were caused by the US-Israel conflict with Iran. The most recent update is given as Pakistan is still heavily dependent on foreign oil, mostly Saudi and the UAE, which is shipped via the important Strait of Hormuz.

Pakistan In Iran War: Worst Hit 

The government has declared special relief programs to reduce the effect of the vulnerable citizens. A subsidy of 100 rupees per litre will be given to the two wheeler users, limited to 20 litres per month within a period of three months and a one time subsidy of 1,500 rupees per acre will be offered to small farmers. In the provision of food security, Aurangzeb emphasized the role of agriculture which provides almost 24 percent of the GDP of Pakistan. The relief actions will alleviate the short term pressure of increase in fuel prices on the low income population and secure a certain stability in the critical spheres. Malik further reported that the government had already given subsidies worth 129 billion rupees in the last three weeks, which is unsustainable in the long run. ‘Since resources are limited and there is no end to this war in sight, there was no way to continue with a blanket subsidy,’ he said. Pakistan has a difficult future with the fuel prices steadily increasing and further straining both households and businesses as the conflict does not seem to end.

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