Pakistan Announces Record Fuel Price Hike as Middle East Conflict Disrupts Oil Supply

Islamabad, March 7: The government of Pakistan has announced a steep increase in petrol and diesel prices, raising both by PKR 55 per litre, the largest single hike in the country’s history. The decision was taken late at night amid concerns over global oil supply disruptions caused by the escalating conflict in West Asia.

Following the revision, the ex-depot price of petrol has risen to PKR 321.17 per litre, up from PKR 266.17, representing an increase of nearly 17 percent.

The price of high-speed diesel, widely used in transport and agriculture, has also been increased significantly. The new rate has been set at PKR 335.86 per litre, compared with the earlier price of PKR 280.86, marking a rise of roughly 20 percent.

The announcement was made during a late-night press briefing attended by Petroleum Minister Ali Pervaiz Malik, Deputy Prime Minister and Foreign Minister Ishaq Dar, and Finance Minister Muhammad Aurangzeb.

Officials attributed the sharp increase to the ongoing confrontation in the Middle East following military actions by the United States and Israel against Iran, and Tehran’s subsequent retaliation. The conflict has created uncertainty in global energy markets and affected crude oil supply routes.

Authorities warned that the situation could remain unpredictable for some time, making it difficult to estimate when fuel prices might stabilise.

Pakistan relies heavily on oil shipments passing through the strategic Strait of Hormuz, a key maritime corridor for global energy trade. Disruptions in this route due to regional tensions have raised fears about supply security.

However, the petroleum minister assured citizens that the country currently holds sufficient fuel reserves and that two oil cargo vessels are already en route through alternative shipping paths.

The government also said fuel prices would now be reviewed every week instead of following the previous schedule due to volatile international markets. Officials added that prices would be reduced quickly if global oil markets stabilise.

Authorities further warned that strict action would be taken against hoarding or artificial shortages of petroleum products across the country.