ISLALAMABAD: Pakistan increased petrol and diesel prices by Rs55 ($0.20) per liter each as escalating conflict in the Middle East sent global oil prices sharply higher and disrupted energy supply routes, officials said.
Petroleum Minister Ali Pervaiz Malik made this announcement during a press conference alongside Deputy Prime Minister and Foreign Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb.
On the occasion, Muhammad Aurangzeb stated the energy and Pakistan’s economy were joined at the hip. “So we are also looking at the wider implications for the economy,” he said, referring to the ongoing Middle East crisis and its effect on petroleum products’ supply and prices.
However, at present, “we are at a good place in terms of macro-stability … So there is no panic discussion. But having said that, hope is not a strategy. Therefore, we have to come together as whole-of-government. We have to do scenario planning and analysis, so that our approach as a whole-of-government remains proactive”, he explained.
“So in the next two days, we will meet the four chief ministers and their secretaries because the execution rests with the provinces … we will meet them to share our message with them and take their buy-in,” he added.
Malik added that the country was facing “unusual circumstances”, and the “fire that ignited in our neighbourhood has engulfed the entire region”. More importantly, he added, “we do not know how long this crisis will persist”.
Elaborating on the surge in petroleum prices in global markets, he said the government had taken the “difficult decision” to increase petroleum products’ prices so that there would be no disruption in the supply of petroleum products.
“After making some changes in the petroleum levy, we are increasing the prices of petrol and high-speed diesel each by Rs55,” he announced, assuring that after “the matter will settle, we will revise down the prices swiftly”.
Price-setting had an important role in this regard, he said, further mentioning the stalling of activity at the Strait of Hormuz.
He also said that the PM had engaged with the Saudi government, and the foreign ministry had also provided assistance in arranging alternative sources of energy in the present scenario.
“Today, two PNSC ships are heading towards Yanbu and Fujairah ports to meet the energy needs of Pakistan,” he said, adding that Pakistan had also received an assurance from Aramco that if “we arrange a big vessel … they will load it from Yanbu and dock it in our waters so that there is a continuous supply of crude to our refineries through PNSC’s ships”.
According the minister, the prices would be reviewed on weekly bases.
Pakistan, which relies heavily on imported fuel to meet its energy needs, is particularly vulnerable to global oil price shocks that can quickly feed into inflation and pressure the country’s external accounts.
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