Pakistan raises petrol and diesel prices over 40% due to soaring global energy costs from the US-Israel war on Iran, impacting its economy.
ISLAMABAD: Pakistan’s government has drastically raised fuel prices in response to spiking global energy costs caused by the war in the Middle East.
Petroleum minister Ali Pervaiz Malik announced the new prices mark a 42.7% increase for petrol and a 54.9% hike for diesel.
“The decision made today is that as per international markets, after the increase in the petrol prices the new price will be 458.40 rupees ($1.64 per litre) which will be effective from tomorrow (Friday),” said Malik.
He set the new diesel price at 520.35 Pakistani rupees ($1.86) per litre, noting its great importance for workers and public transport.
The minister stated the government was forced to pass along the price increase because resources are limited.
“We do not currently see indications of the end of this war,” Pervaiz said.
The US-Israel war on Iran, launched on February 28, has plunged the region into conflict and virtually frozen shipping in the Strait of Hormuz.
This key waterway normally sees a fifth of the world’s energy supplies pass through it.
Pakistan is heavily reliant on such oil and gas and had earlier raised prices by 20% on March 6.
The government has unveiled austerity measures designed to save fuel, including a four-day work week for many offices.
It has also extended school holidays and moved some classes online.
Pakistan is a lower-middle-income country with roughly 25% of its 240 million population living in poverty.
Several Asian countries have hiked fuel prices to address the crisis sparked by the war.
Bangladesh raised prices of liquefied petroleum gas and compressed natural gas by 29% on Thursday.
The International Monetary Fund warned that vulnerable economies like Pakistan face pressure from higher energy prices and supply chain snarls.
“Parts of the Middle East, Africa, Asia-Pacific, and Latin America face the added strain of higher food and fertilizer prices and tighter financial conditions,” the IMF said.
