The government of Pakistan has announced a significant increase in petroleum prices, raising the cost of petrol and diesel by Rs55 per litre. This decision, described as difficult but necessary, aims to guarantee a continuous and stable fuel supply across the country amid a steep surge in global oil prices. Federal Minister for Petroleum, Ali Pervaiz Malik, outlined the rationale behind this move during a press briefing held alongside Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, as well as Finance Minister Muhammad Aurangzeb.
Minister Malik explained that when the government last adjusted petroleum prices on March 1, the international benchmark Platts price for petrol stood at approximately $78 per barrel, while diesel averaged around $88 per barrel during the preceding two weeks. However, since that time, global oil markets have experienced a sharp escalation. By March 6, petrol prices had climbed to $106.80 per barrel, with diesel prices soaring to nearly $150 per barrel. This dramatic rise in international oil costs left the government with limited options, compelling it to raise domestic fuel prices to prevent any interruptions in the country’s energy supply chain.
In light of these developments, the government opted to revise the petroleum levy and implement a Rs55 per litre increase on both petrol and diesel. The minister highlighted that diesel consumption is expected to rise further in the coming months due to the commencement of the agricultural crop season, which traditionally demands higher fuel usage. Additionally, diesel remains a critical energy source for public transportation, which serves a large segment of Pakistan’s low-income population, making the uninterrupted availability of diesel particularly vital.
Minister Malik reassured the public that the government intends to reassess fuel prices regularly and will consider lowering them once international oil markets stabilize, aiming to alleviate the financial burden on consumers. He also expressed optimism that ongoing diplomatic initiatives will help ease the regional tensions currently impacting global energy supplies. To better respond to the volatile international environment, the government has shifted from a fortnightly to a weekly review of petroleum prices, allowing for more agile adjustments to maintain supply stability.
The minister further elaborated on the extraordinary regional circumstances, noting that the crisis originating in a neighboring country has now extended its impact across the wider region. Despite these challenges, proactive measures led by Prime Minister Shehbaz Sharif have successfully bolstered Pakistan’s petroleum reserves to a secure level in recent weeks, thereby averting any immediate threat of a fuel shortage crisis. The government has ensured that petroleum products have been supplied in accordance with domestic demand throughout the past month, maintaining operational continuity across the supply chain.
However, Malik revealed that certain unscrupulous actors attempted to exploit the situation by creating artificial shortages, including the closure of petrol stations to manipulate market conditions and generate illicit profits. Prime Minister Shehbaz Sharif has taken a firm stance against such practices, instructing provincial chief secretaries to initiate strict legal actions against those responsible for disrupting fuel availability.
In anticipation of potential supply route disruptions, the government has also intensified efforts to secure oil from alternative sources. The Prime Minister has engaged directly with Saudi authorities, while the Foreign Ministry has facilitated arrangements to diversify energy imports. Currently, two vessels from the Pakistan National Shipping Corporation (PNSC) are en route to Yanbu and Fujairah ports, tasked with transporting crucial petroleum supplies to Pakistan. Saudi Aramco has provided assurances that, if a large tanker is organized, it can be loaded at Yanbu and subsequently delivered to Pakistan’s waters via PNSC feeder ships, ensuring a steady flow of crude oil to domestic refineries.
These comprehensive measures underscore the government’s commitment to safeguarding Pakistan’s energy security amid a turbulent international oil market. By balancing necessary price adjustments with strategic diplomatic and logistical initiatives, the administration aims to minimize the impact on consumers while maintaining the uninterrupted availability of vital fuel resources throughout the country.
