Govt increases petrol price by Rs55 per litre amid global oil prices surge triggered by US-Israel war with Iran

ISLAMABAD, Mar 07 (APP): The federal government on Friday increased the price of petrol by Rs55 per litre, citing a sharp surge in global oil prices triggered by escalating tensions linked to the US-Israel war with Iran.

The announcement was made by Petroleum Minister Ali Pervaiz Malik during a press conference here alongside Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar and Finance Minister Muhammad Aurangzeb.

Following the latest review, the price of petrol has been raised to Rs321.17 per litre from Rs266.17, while the price of high-speed diesel has increased to Rs335.86 per litre from Rs280.86.

The adjustment marks the first weekly review of fuel prices, introduced after regional tensions threatened a significant portion of global energy supply, particularly following the closure of the Strait of Hormuz, a key route for international oil shipments. Previously, the government revised petroleum prices on a fortnightly basis.

Speaking at the briefing, Malik said the government made the decision after carefully assessing the rapidly evolving situation in international energy markets.

“We will now review these prices on a weekly basis,” he said, adding that the government would reduce fuel prices immediately once global market conditions improve. There is no doubt that we are facing extraordinary circumstances,” the minister said.

Malik added that the government had taken steps in recent weeks to preserve petroleum reserves in order to maintain uninterrupted fuel supplies across the country.

“Over the past few weeks, we have safeguarded our petroleum reserves and ensured supply in line with available stocks,” he said.

The minister also warned of strict action against hoarding and profiteering, saying that authorities would move against those attempting to manipulate supply for illegal gains.

“Action will be taken against anyone who stops selling petrol to make undue profits,” he said.

He noted that global petrol and diesel prices have risen sharply, forcing the government to take what he described as a difficult but necessary decision to increase domestic fuel prices.

Earlier, in his prologue of the briefing, Deputy Prime Minister and Foreign Minister (DPM/FM), Senator Mohammad Ishaq Dar briefed the media on the diplomatic efforts being led by Prime Minister Shehbaz Sharif and the Chief of defence forces and Chief of Army Staff Field Marshal Syed Asim Munir who were engaging with their respective counterparts to deescalate the ongoing conflict in the region.

Senator Dar said the entire region was virtually facing war like situation and the conflict in Iran had incurred negative impact on the petroleum prices in the global market. The petroleum prices globally, he said had spiked up, he said, adding that the prime minister chaired a special session with Oil and Gas Regulatory Authority (OGRA) and other stakeholders to work out solutions to tackle the impending crisis of fuel price hike.

He said the decisions to revise the existing petroleum prices was made keeping in view the global rise in petroleum prices due to the ongoing conflict in the region. The decisions made pertaining to the revision of petroleum prices would be enforced from 2400 hours, he added.