Pakistan raised petrol and diesel prices by around 20% following a spike in global oil prices caused by the conflict in Iran, according to officials quoted by Reuters.
Oil Minister Ali Pervaiz Malik announced the big price hike in a televised message, calling the decision inevitable.
“We took this decision out of compulsion due to the sharp increase in oil prices worldwide,” Malik said, according to Reuters.
The government raised gasoline prices by 55 rupees ($0.20 per liter) to 321.17 rupees, while diesel was raised to 335.86 rupees per liter, one of the biggest adjustments in recent years, Reuters noted.
Consumer concerns about inflation
The price hike is expected to increase inflationary pressure and affect Pakistan’s lower-income population, Reuters reported. Fuel costs usually affect transportation prices and prices of basic goods across the country.
Before the announcement, long queues were reported at gas stations in major cities including Lahore and Karachi, according to Reuters.
Business owner Imran Hussain, who was waiting in line at Lahore railway station, said he was preparing for a possible shortage.
“I’ve been waiting for my turn for the last 70 minutes,” he told Reuters.
The government warns against hoarding
Prime Minister Shehbaz Sharif warned against fuel hoarding and said authorities would crack down on anyone trying to stockpile, Reuters reported.
“We have sufficient gasoline reserves. But we plan to stretch them because we don’t know when the crisis in the Middle East will end,” said an official statement quoted by Reuters.
Oil imports and weekly overview
Pakistan imports most of its oil from Saudi Arabia and the United Arab Emirates, primarily through the Strait of Hormuz, a key global energy transit route, Reuters reports.
The government said fuel prices will now be revised weekly, the oil ministry confirmed, as quoted by the news portal.
