Pakistan Fuel Price Hike: 200% Increase Amid Strait of Hormuz Crisis

Pakistan's government, led by Prime Minister Shehbaz Sharif, has approved a significant increase in the levy on high-octane fuel, raising it by PKR 200 to PKR 300 per litre. This decision follows previous hikes in petrol and diesel prices that have already driven up costs for domestic and international air travel.

Pakistan decided on Sunday that it would increase the levy on high-octane fuel per litre by Pakistani Rupees (PKR) 200 from PKR 100 to PKR 300, as per ARY News. Pakistan's Prime Minister Shehbaz Sharif has authorised a major hike in the duty on high-octane fuel used in luxury automobiles. The decision was made during a high-level meeting hosted by Sharif, when he discussed gasoline price and economic assistance. According to ARY News, the hike in high-octane gasoline prices will have no influence on public transport tickets or air travel expenses.

Ministers of Law and Justice Azam Nazir Tarar, Finance Minister Muhammad Aurangzeb, Minister of Information and Broadcasting Attaullah Tarar, Minister of Petroleum Ali Pervaiz Malik, and other key government officials attended the meeting.

Earlier on March 6, the federal government hiked petrol and diesel prices by PKR 55 per litre as rising global oil prices, spurred by the US-Israel conflict with Iran, pushed up local energy expenses, according to ARY News. Petroleum Minister Ali Pervaiz Malik made the announcement at a news conference alongside DPM Ishaq Dar and Finance Minister Muhammad Aurangzeb.

What Will Be The New Prices?

According to reports, the new petrol price will be PKR 321.17 per litre, up from PKR 266.17; the diesel cost would be PKR 335.86 per litre, up from PKR 280.86 following the review. Meanwhile, Pakistani airlines boosted costs on March 10 in response to rising jet fuel prices, according to ARY News, citing airline sources.

According to these reports, domestic ticket rates have increased from PKR 2,800 to PKR 5,000. This hike applies to flights from Karachi to Lahore, Islamabad, and other domestic destinations, according to ARY News.

International travel has witnessed an even greater increase, with tickets rising by a whopping PKR 10,000 to PKR 28,000. Specifically, rates to Middle Eastern and Central Asian nations have increased by PKR 15,000.