Islamabad witnessed a significant development on Thursday as Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, hinted at the possibility of further increases in petroleum prices in the near future. This announcement comes at a time when consumers across the country are already grappling with the financial strain caused by a recent substantial surge in fuel costs. The government had recently raised petrol and diesel prices by Rs55 per litre, attributing the hike to the escalating global oil prices fueled by mounting tensions in the Middle East region.
Under the revised pricing structure, petrol now stands at Rs321.17 per litre, while diesel has seen an even sharper rise, jumping from Rs275.70 to Rs335.86 per litre. These adjustments have placed additional pressure on everyday consumers and businesses alike, who are feeling the ripple effects across various sectors of the economy. The finance minister shared these insights during a briefing session with the Senate Standing Committee on Finance and Revenue, which was presided over by Senator Saleem Mandviwala.
During the meeting, Aurangzeb elaborated on the government’s ongoing efforts to manage the economic challenges by implementing austerity measures, as directed by Prime Minister Shehbaz Sharif. Despite these efforts, he cautioned that the volatile situation in the region and persistent global market pressures might necessitate further price adjustments in the coming days. To address this dynamic environment, the Prime Minister has established a ministerial committee tasked with closely monitoring the prices and supply of petroleum products on a daily basis, ensuring that the government can respond swiftly to any sudden changes.
Highlighting the gravity of the regional situation, the finance minister pointed out that Qatar has declared force majeure due to the ongoing conflict, severely disrupting the import of liquefied natural gas (LNG). This disruption has caused LNG prices to skyrocket, with the cost of a single cargo soaring from approximately $25 million to nearly $100 million. Such drastic price fluctuations are expected to have a direct impact on the country’s energy sector and overall economic stability.
In addition to energy concerns, Aurangzeb mentioned that the government is contemplating the closure of six urea fertilizer plants. This consideration arises from a surplus in supply, as current stock levels exceed those of the previous year. The minister also drew attention to fuel rationing measures being implemented in neighboring countries like Sri Lanka and Bangladesh, where the energy crises have reached even more critical levels. These developments underscore the complex challenges Pakistan faces in balancing domestic needs with external pressures.
Meanwhile, opposition parties have voiced strong condemnation of the government’s decision to raise petroleum prices so steeply. They warn that such increases will exacerbate inflation and deepen poverty across the country. Jamaat-e-Islami chief Hafiz Naeemur Rehman publicly rejected the price hike, describing it as unacceptable. He criticized the government for imposing a petroleum levy when global oil prices had previously fallen to a five-year low, instead of passing on relief to the public. Now, with prices climbing again, the burden is once more being shifted onto ordinary citizens, he argued, highlighting the growing dissatisfaction among political rivals and the general populace alike.
