E-Paper
Massive fuel hike in Pakistan despite US-Iran mediation role, Hormuz Strait waiver
Pakistan procures most of its crude oil, 80 per cent to be precise, from Dubai and Oman markets, which oil prices have reached record highs due to the war.
Pakistan has drastically hiked fuel prices this week even as the energy crisis continue to reverberate across continents over the ongoing US-Iran war, now in its second month.
Petroleum minister Ali Pervaiz Malik on Thursday raised petrol prices by PKR 137.24 ( ₹45.6 or $0.49) to PKR 458.4 per litre ( ₹152.6 or $1.65), a hike of 43 per cent; while diesel prices were raised by PKR 184.49 per litre ( ₹61.42 or $0.66) to PKR 520.35 per litre ( ₹173.23 or $1.87), a rise of 55 per cent, the Dawn reported.
Islamabad procures most of its crude oil, 80 per cent to be precise, from Dubai and Oman markets, where oil prices have reached record highs due to the war.
The government also announced a hike of PKR 34, to 457.80 per litre, in kerosene prices, at the same time offering a subsidy on two-wheelers.
Hike despite mediation role
The hike in fuel prices comes even as Islamabad is playing a mediation role in the conflict and recently hosted a meeting of the foreign ministers of Gulf states for an early end to war.
The country also continues to receive two daily oil shipments through the Strait of Hormuz, according to Nikkie Asia. Pakistan foreign minister Ishaq Dar said earlier said Iran had agreed to allow 20 ships under the Pakistani flag to pass through the Strait of Hormuz.
Pakistan had earlier increased fuel prices on March 6, shortly after the war began in West Asia on February 28.
Protest in Pakistani cities, modest relief
The move to raise fuel prices were met with immediate protests from residents in several cities, including Rawalpindi and Islamabad, following which Pakistan Prime Minister Shehbaz Sharif announced slashing the petrol price.
Also Read: ‘Never refused to go to Islamabad’: Iran expresses openness to Pak-mediated talks with US
A day after the steep hike was announced, Sharif in a midnight address announced that the government has reduced petrol levy by PKR 80 per litre. The revised rate for petrol was PKR 378 per litre, down from the hiked PKR 458.41 per litre.
"I am announcing an immediate reduction of PKR 80 per litre in petrol levy," Sharif said on Friday, adding that the new price will take effect from midnight. He further said that the petrol price would remain unchanged for at least one month.
Additionally, the Pakistani government has also announced relief measures, including a subsidy of PKR 100 per litre for motorcycle users, PKR 70,000 to 80,000 to goods transport vehicles, and PKR 1,00,000 to passenger vehicles.
