The government has implemented a significant increase in the price of kerosene, raising it by Rs130.08 per litre. This adjustment has pushed the new retail price to Rs318.81, up from the previous rate of Rs188.73. The updated pricing took immediate effect following an official notification released on Saturday, signaling a sharp rise that has caught the attention of consumers and industry stakeholders alike.
This dramatic surge in kerosene prices comes on the heels of another major fuel price hike announced just a day earlier, where petrol and diesel rates were increased by Rs55 per litre. These successive adjustments are a direct response to the volatile global oil market, which has been severely impacted by the ongoing conflict involving the United States, Israel, and Iran. The geopolitical tensions have disrupted energy supplies and caused a spike in crude oil prices worldwide.
During a press briefing, Petroleum Minister Ali Pervaiz Malik explained that the government’s decision to revise fuel prices was based on a thorough review of the current international market conditions. He was joined by Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb, who collectively addressed the economic implications of these changes. Their presence underscored the gravity of the situation and the government’s commitment to managing the fallout from the global energy crisis.
As a result of the latest price revision, petrol now costs Rs321.17 per litre, a rise from Rs266.17, while the price of high-speed diesel has increased to Rs335.86 per litre from Rs280.86. These adjustments represent the first weekly fuel price review conducted by the government, a shift from the previous biweekly schedule. The change in frequency reflects the rapidly evolving nature of the global oil market, especially after the closure of the Strait of Hormuz, a critical chokepoint for international oil shipments.
In addition to the price hikes, the government has also restructured the petroleum development levy. The levy on petrol has been increased from Rs84.40 to Rs105 per litre, whereas the levy on high-speed diesel has been reduced from Rs76.21 to Rs55 per litre. This recalibration aims to balance revenue generation with the economic pressures faced by consumers and businesses amid rising fuel costs.
The global oil markets have experienced extreme volatility recently due to the intensifying conflict in the Gulf region. The involvement of the US, Israel, and Iran has led to disruptions in shipping routes and energy transport, particularly through the Strait of Hormuz, which is a vital passageway for a significant portion of the world’s oil supply. This instability has caused crude oil prices to soar sharply, with an increase of more than eight percent recorded on Friday alone and an overall jump of nearly 30 percent over the week.
Adding to the tension, US President Donald Trump declared that the ongoing conflict would only conclude if Iran agreed to an “unconditional surrender,” a statement that further exacerbated market fears and contributed to the surge in oil prices. These developments have placed additional pressure on Pakistan’s economy, which is heavily reliant on imported fuel, thereby necessitating these steep price adjustments to manage the fiscal impact.
