Amid dwindling forex reserves and economic fallout, Pakistan decided on Sunday that it would increase the price of high-octane fuel per litre by Pakistani Rupees (PKR) 200 from PKR 100 to PKR 300. Pakistani Prime Minister Shehbaz Sharif approved the significant increase in the levy on high-octane fuel used by luxury vehicles.

The decision was taken during a high-level meeting chaired by Sharif, where he reviewed matters related to fuel pricing and economic relief. According to the Prime Minister, the decision was taken in view of the prevailing situation in the Middle East and the closure of the Strait of Hormuz- a choke point responsible for one-fifth of crude oil supply to the world.

Why has Pakistan increased fuel prices?

The increase in high-octane fuel prices will not impact public transport fares and air travel costs. “This decision will save the government PKR 9 billion per month and as per the prime minister’s instructions, will be used to provide relief to the public,” the PMO said.

It added that the move was aimed at reducing the economic burden by shifting it to higher-income groups. “The richest class in the country will bear the burden,” the statement said.

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No impact on ordinary vehicles: Shehbaz Sharif

The PMO emphasised that fuel prices for ordinary vehicles used by lower- and middle-income groups had not been increased, and the move would not impact public transport fares or air travel costs.

Earlier on March 6, the federal government had raised petrol and diesel prices by PKR 55 per litre as surging global oil prices, fuelled by the US-Israel war with Iran, put pressure on domestic energy costs.

The announcement was made by Petroleum Minister Ali Pervaiz Malik in a press conference alongside DPM Ishaq Dar and Finance Minister Muhammad Aurangzeb.

New petrol and diesel prices in Pakistan

The new price of petrol will be PKR 321.17 per litre from PKR 266.17; whereas, the diesel rate will be PKR 335.86 per litre from PKR 280.86 after the review.

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Meanwhile, Pakistani airlines on March 10 increased fares following an uptick in jet fuel prices, ARY News reported, citing airline sources.

According to these sources, domestic ticket prices have risen by PKR 2,800 to PKR 5,000. This increase applies to flights from Karachi to Lahore, Islamabad, and other domestic stations, as reported by ARY News.

International travel has seen an even more significant jump, with fares increasing by a staggering PKR 10,000 to PKR 28,000. Specifically, fares for flights to Middle Eastern and Central Asian countries have risen by PKR 15,000.

(With inputs from agency)

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