Pakistan government increases petrol and high-speed diesel prices by Rs55 per liter amid global oil price surge linked to Middle East tensions. New prices effective from midnight Saturday.
Government announce major fuel price hike
The government of Pakistan has announce a significant increase fuel prices of both petrol and high speed diesel by R’s 55 per litter. The decision was revealed during a press conference on Friday by petroleum minister Ali pervaiz malik along side deputy prime minister and foreign minister Ishaq dar and finance minister Muhammad Aurangzeb.
According to te announcement about the ex depot price of petrol has jumpe from R’s 266.17 litter to 321.17 per litter increase price in 17%. Meanwhile the ex depot price of high speed diesel has been set at R’s 335.86 per litter for upcoming next weak.
Official conform that the new fuel prices will take effects from midnight on Sunday.
Global tension Behind rising petroleum prices
Speaking at the press conference Ishaq Dar explain that the increase feul prices is large linked to globally energy market and recent geopolitical tension involving Iran, United States and Israel.
Ishaq dar noted petroleum prices in international markets have have surged dramatically due to the conflict in the middle east. According to him the price of several petroleum products globaly increase between 50% and 70%.
Feul prices automatically increase due to globally market impact in many other countries. Ishaq dar said adding that government worldwide are experience the same trickle dwin effect from rising crude oil costs.
However he emphasizes that prime minister shebaz Sharif had delay the decision for several weak in an attempt to minimize the impact on public.
Government committee monitoring the situation
Ishaq dar explain that a standing Committee led by petroleum minister Ali pervaiz Malik and finance minister Muhammad Aurangzeb had been closely monitoring development in global energy market for past several week.
Another later high level committee was formed under
Ishaq dar leader ship to review the situation in details.
The committee consulted various stakeholders with the aim of reducing the financial burden on consumer as much posibal.
Our goal was to ensure that the impact of middle East crisis on petroleum price remain as limited as possible for the end consumer.
He also reveled that Pakistan leadership incli prime minister shebaz Sharif and cheif of army staff asim munir. Contact with international civilian and military leaders regarding the regional situation.
Economic stability and government strategy
Finance minister muhammad Aurangzeb said that the government committee had been holding daily meeting for last five days to assess the impact of rising fuel prices on Pakistan economy.
He emphasizes that energy prices are closely linked with economic stability and therefore the government is careful evaluation the border impact.
Despite the increase in fuel prices Aurangzeb reassured citizen of Pakistan is currently in relatively stable macroeconomic position.
There in no need on panic he said however hope alone is not a strategy. The government must remain protactive and prepared for different possibilities scenario.
He added that demand management and energy consumption control would play an important role in managing the situation.
Aurangzeb also revealed that the federal government will
Soon meet with chif minister of four provinces to coordinate implementation and share the government strategies.
Steps to secure Pakistan energy supply
Petroleum minister Ali prevaiz Malik described the situation and extraordinary circumstances saying that region tension have affected energy market across the entire region.
He highlighted disruption around the strait of Hormuz one of the world most important oil shipping routes as a key factor influence global petroleum price
To ensure stable energy supplies that government has also engage with international partners. Malik Revealed that Pakistan has been in discussion with Saudi Arabia. The foreign ministry has helped arrange alternatives energy supply routs.
According to the minister to vessel belongs to the Pakistan national shipping corporation are currently heading towards the port of yanbu and Fujairah to help meet Pakistan fuel needs.
He also said that Saudi Aramco has assured Pakistan that if a larger vessel is arranged it will loaded from yanbu and anchored Pakistani water to ensure a continues supply of crude oil.
Weekly Review of Fuel prices
Explain the government decision Malik said the RS 55 per litter in crease was a difficult but never step to prevent disruption in the country fuel supply.
He also announce that the government will now review petroleum prices on weakly basis instead of longer interval.
The government hope that once globally condition stability fuel prices in Pakistan can be revised.
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