By Staff Reporter
ISLAMABAD: The government increased the price of petrol and high-speed diesel by Rs26.77 a liter on Friday, the latest in a series of volatile fuel-price revisions triggered by the now-paused US-Israeli war on Iran.
Following the hike, petrol now costs Rs393.35 a liter and high-speed diesel Rs380.19 a liter, according to a press release issued by the Petroleum Division. The new rates take effect for the week beginning April 25. The adjustment comes as authorities continue weekly Friday-night revisions to domestic fuel prices, a practice that took hold after the conflict erupted on Feb. 28. The war prompted the closure of the Strait of Hormuz — the route for one-fifth of the world’s oil and gas supplies in peacetime — and triggered a global fuel crunch.
Petrol is the primary fuel for private cars, small vehicles, rickshaws and motorcycles, placing it at the center of household budgets for middle- and lower-middle-class Pakistanis. High-speed diesel powers trucks, buses and industrial generators, directly affecting freight costs and electricity generation.
The government’s initial response to the war was swift. On March 6 it raised both petrol and diesel prices by Rs55 a liter. Three days later it announced a package of unprecedented austerity measures. In subsequent weeks, Prime Minister Shehbaz Sharif rejected recommendations for further increases on three occasions, even as global oil markets rose.
That stance shifted on April 2, when Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb announced an unprecedented jump: 43% for petrol and 55% for high-speed diesel. The two ministers also unveiled plans for a targeted fuel-subsidy program aimed at shielding the most vulnerable consumers. Within 24 hours, however, Shehbaz intervened to soften the blow. He slashed the petroleum levy by Rs80 a liter, bringing the price of petrol down to Rs378 a liter.
Further relief followed on April 10, when the prime minister cut diesel prices by Rs135 a liter and petrol by Rs12 a liter. Last week he approved an additional Rs32.12 reduction in the price of diesel while leaving petrol unchanged. Friday’s increase marks the first upward move since those successive cuts, reflecting fresh pressure from international crude markets in the wake of the Iran conflict. The Petroleum Division gave no further details on the underlying cost calculations or the status of the targeted subsidy program.
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