Pakistan hikes petrol price by PKR 55/litre in steepest increase ever amid West Asia conflict

The ex-depot price of petrol in Pakistan has been revised to PKR 321.17 per litre from PKR 266.17 per litre, reflecting an increase of around 17 per cent.

In a major overnight decision, Pakistan government has increased petrol and high-speed diesel prices by PKR 55 per litre each, said to be the highest-ever hike. This comes amid supply disruptions due to the ongoing Middle East conflict, sparked by US-Israel strikes on Iran last Saturday and escalated by latter's retaliation.

Trucks are parked along a road near the Torkham border between Afghanistan and Pakistan on February 28 (AFP/File)

Addressing a press conference just before midnight, petroleum minister Ali Pervaiz Malik, deputy prime minister and foreign minister Ishaq Dar along with finance minister Muhammad Aurangzeb announced the hike with the assurance that the country has sufficient petroleum reserves, reported Pakistani news portal The Dawn. Track latest in US-Iran ‘war’ here

Pakistan fuel price hike: What are the new rates

With the increase in fuel rates, the ex-depot price of high-speed diesel has been fixed at PKR 335.86 per litre for the coming week, up by about 20 per cent from PKR 280.86 per litre.

Likewise, the ex-depot price of petrol was revised to PKR 321.17 per litre from PKR 266.17 per litre, reflecting an increase of around 17 per cent.

Pakistan petroleum minister said at the presser that the conflict in the Middle East created uncertainty in the entire region, offsetting global energy supply and prices, according to The Dawn.

"The fire that started in a neighbouring country has spread across the entire region. We do not know how long this crisis will continue, and there is no clear timeline for its end," he said.

The Dawn also reported that the measure came after the government on Friday set aside a proposed national action plan that included measures like work from home and distance learning measures in response to a potential fuel crisis, and instead decided to keep normal activities unchanged for at least a week.

Assuring that the prices will be reduced as soon as the situation in the international market improves, Malik said that Pakistan was dependent on oil supplies passing through the Strait of Hormuz, which were affected by the ongoing conflict.

The minister said that the government was monitoring the supply side and warned of strict action against hoarding and artificial shortages of petroleum products in the country.

He also shared that two Pakistani oil vessels were coming through alternative routes.

Malik said the government would now review petroleum prices on a weekly basis in view of the volatile international market.

"As soon as the situation improves internationally, we will reduce prices at the same speed," he said.