ISLAMABAD: Pakistan’s federal government has announced a sharp increase in petrol and diesel prices, raising both fuels by Rs55 per litre as global oil prices surge amid escalating tensions in the Middle East.
The announcement was made during a press conference in Islamabad by Petroleum Minister Ali Pervaiz Malik, who was accompanied by Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb.
Under the new pricing structure, the price of petrol has been increased from Rs266.17 to Rs321.17 per litre. Similarly, the price of high-speed diesel has risen from Rs280.86 to Rs335.86 per litre. The revised prices have taken effect immediately.
The government also announced a change in its fuel price review mechanism. Instead of reviewing petroleum prices every two weeks, authorities will now conduct a weekly review in light of the rapidly changing global energy market.
Addressing the press conference, Ali Pervaiz Malik said the government had taken the difficult decision after carefully reviewing the evolving international market situation. He noted that global petrol and diesel prices had increased sharply in recent weeks due to geopolitical tensions affecting energy supply routes.
“There is no doubt that we are going through extraordinary circumstances,” the petroleum minister said, adding that the government would reduce prices promptly if the international situation improves.
Malik explained that the government had been closely managing the country’s petroleum reserves in recent weeks to ensure uninterrupted fuel supply across Pakistan.
“Over the past few weeks, we have preserved petroleum reserves and maintained supply according to our available stocks,” he said, assuring the public that the government is working to prevent any shortages.
The petroleum minister also warned fuel dealers against hoarding or withholding supply in an attempt to make illegal profits. He said authorities would take strict action against anyone found involved in such activities.
“Action will be taken against those who stopped selling petrol in order to make undue profits,” Malik stated.
Deputy Prime Minister Ishaq Dar said that Prime Minister Shehbaz Sharif had chaired an important meeting earlier in the day to review the developing situation and discuss possible responses.
“The prime minister himself chaired a meeting today in which the situation was reviewed,” Dar said, adding that the government is exploring various options to deal with the crisis.
According to Dar, Pakistan has also reached out to foreign counterparts in an effort to reduce regional tensions that are impacting global energy markets. He noted that diplomatic contacts had been made with foreign ministers of several countries.
“We have contacted the foreign ministers of other countries,” he said, emphasizing that Pakistan is trying to work with international partners to ease tensions in the region.
Dar also acknowledged that it remains unclear how long the current geopolitical tensions will last and when the global oil market may stabilize.
“We will have to see how long it takes to reduce these tensions,” he added.
Meanwhile, Finance Minister Muhammad Aurangzeb said the government is carefully assessing the broader economic impact of rising fuel prices, particularly on Pakistan’s imports and exports.
Speaking during the press conference, Aurangzeb said authorities are evaluating how the increase in petroleum prices could affect trade, economic activity, and inflation.
“We are reviewing what impact the increase in prices will have on imports and exports,” he said.
Despite the price hike, the finance minister reassured the public that Pakistan currently has sufficient fuel reserves and that there is no need for panic.
Aurangzeb added that the government will formulate its economic strategy based on how the situation evolves in the coming weeks.
He also said Prime Minister Shehbaz Sharif had directed federal authorities to coordinate closely with provincial governments to ensure effective management of the situation across the country.
The latest increase in fuel prices comes as global energy markets face uncertainty following Iran’s announcement of the closure of the Strait of Hormuz, one of the world’s most critical oil shipping routes.
The closure threatens a significant portion of global oil supply and has forced countries dependent on imported fuel to explore alternative routes.
In response, Pakistan has approached Saudi Arabia for assistance in ensuring uninterrupted oil supplies. Petroleum Minister Ali Pervaiz Malik recently met with the Saudi Ambassador to Pakistan, Nawaf bin Said Al‑Malki, to discuss alternative supply arrangements.
According to the minister, Saudi authorities have assured Pakistan that oil shipments can be facilitated through the Port of Yanbu on the Red Sea if necessary.
Officials say the government is closely monitoring global developments and will continue reviewing petroleum prices regularly to respond to changing market conditions while trying to minimize the impact on the public and the national economy.
