Pakistan Petrol And Diesel Prices Surge By PKR 55 Amid US‑Israel‑Iran War — Is The Government Repeating Covid‑Era Measures By Considering Mandatory Work‑From‑Home Policies?

In a drastic decision that has rocked the entire of Pakistan, the government has declared a steep rise of PKR 55 per litre of petrol and high speed diesel effective on Friday night at midnight on March 7. This unprecedented increase increases the price of petrol and diesel to PKR 321.17 and PKR 335.86 per litre respectively. It was formalised after an emergency late night press conference in which Deputy Prime Minister Ishaq Dar, the Finance Minister Muhammad Aurangzeb and the Petroleum Minister Ali Pervaiz Malik were present. The authorities attributed the sudden rise to the growing war between Iran, Israel, and the United States as the major cause and they are alarmed that any interference in the world energy supply lines has exposed Pakistan to harsh shortages.

Pakistan Petrol And Diesel Prices Surge By PKR 55 Amid US‑Israel‑Iran War — Is The Government Repeating Covid‑Era Measures By Considering Mandatory Work‑From‑Home Policies?

This announcement created instant panic in the fuel stations in the major cities such as Lahore, Karachi, Islamabad, and Rawalpindi. Drivers came in to empty their tanks, and long queues, fights, and petrol rationing took place in a number of places. A few of the petrol station owners that foresaw the stockouts or increased prices further also said they closed down in certain places temporarily. The government justified the use of the petrol by the fact that the Strait of Hormuz blockade disrupted the movement of almost 90 percent of the oil and 99 percent of the LNG imports of Pakistan. The oil price around the world has risen by an average of 78-107 per barrel and the maritime insurance and freight costs have gone high because of the war-risk premiums, and state intervention and price changes have been necessary.

Work‑From‑Home Policies?

The government is also looking into emergency conservation to alleviate the crisis like it was the case during the Covid19 pandemic. Finance Minister Aurangzeb has reported that employees and distance learning can be introduced as work from home and school policies to reduce fuel consumption. Having current reserves of about 26 days of petrol and 25 days of diesel, Pakistan is currently negotiating the Red Sea as an alternative route to oil with Saudi Arabia. But as the IMF pressures the entire global price burden on the consumers, citizens face the prospect of increased inflation and further economic impact in the near future, as the country struggles both with the supply pressure and the wildly escalated world energy prices.

Also Read: Work From Home And Online Classes To Tackle Fuel Crisis? Pakistan Plans To Bring Covid-Era Measures As Cash-Strapped Nation Left With Weeks Of Petrol