Lahore: Pakistan has announced a substantial increase in retail diesel and gasoline prices, marking a nearly 20 percent rise. The decision comes in response to soaring global oil prices driven by the ongoing conflict in Iran.
According to Thai News Agency, Oil Minister Ali Pervez Malik made the announcement via a live televised video call, declaring the largest price increase in the nation's history. The price of fuel has been raised by 55 rupees per liter, translating to approximately 6.25 baht. Consequently, gasoline now costs 321.17 rupees per liter (around 36.48 baht), while diesel is priced at 335.86 rupees per liter (approximately 38.15 baht). The minister emphasized that the surge in global oil prices made this decision inevitable.
This price hike is anticipated to exacerbate inflation, impacting Pakistan's economically vulnerable population. In anticipation of the price increase, major cities such as Lahore and Karachi experienced long queues at gas stations. Imran Hussein, a business owner in Lahore, shared that he waited over 70 minutes to refuel, preparing for potential fuel shortages in the future.
Prime Minister Shehbaz Sharif has issued a stern warning to traders against hoarding oil, stating that severe sanctions would be imposed. The Oil Minister reassured the public that Pakistan possesses adequate oil reserves but stressed the need for strategic consumption due to the uncertainty surrounding the Middle East crisis.
Pakistan primarily imports oil from Saudi Arabia and the United Arab Emirates, with shipments passing through the Strait of Hormuz, a strategically vital region affected by the conflict. To manage the situation, the government plans to conduct weekly reviews of energy prices.