A major increase in petrol prices is expected in Pakistan as tensions in the Middle East have disrupted global oil supply. The closure of the Strait of Hormuz has created serious pressure on the international oil market.
In response to the changing global situation, the federal government has decided to review petroleum product prices on a weekly basis instead of the usual schedule. The move aims to respond quickly to sudden changes in global oil rates.
Sources said Prime Minister Shehbaz Sharif has approved recommendations from a special committee formed to monitor petroleum products. The committee advised that due to the regional crisis, fuel prices should be adjusted weekly.
Officials said international petroleum prices are rising rapidly in global markets. Because of this trend, the government is also preparing to increase petrol and diesel prices in the country.
According to government sources, petrol prices may increase by about Rs25 per litre. Meanwhile, high speed diesel could become as much as Rs60 per litre more expensive if global prices continue rising.
Earlier, a high level meeting on petroleum products was held under the chairmanship of Prime Minister Shehbaz Sharif. During the meeting, the Ministry of Petroleum gave a detailed briefing about the country’s fuel reserves in light of the regional situation.
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Officials informed the meeting that Pakistan currently has sufficient petroleum reserves to meet domestic demand for the time being.
During the meeting, the prime minister directed provincial governments to take strict legal action against anyone involved in hoarding petroleum products. He said any petrol pump found creating an artificial shortage should be closed immediately and its license cancelled.
The prime minister also directed the petroleum minister to visit provinces and work with provincial governments to prepare a strategy for saving petroleum products and ensuring uninterrupted supply to the public.
He further ordered the creation of a digital dashboard to monitor the movement of petroleum products across the country. The system will allow real time data sharing with provinces to track fuel transportation.
However, the Petrol Pumps Owners Association rejected the prime minister’s warning about action against petrol pumps.
The association said it strongly condemns the announcement of action against petrol pump owners. It insisted that petrol pump operators are not creating artificial shortages.
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According to the association, whatever petrol arrives at petrol pumps is sold immediately due to high demand. They stated that no petrol pump is storing petrol or diesel.
The association added that petrol sales are continuing at all petrol pumps according to the supply being provided. It said there is no justification for action against petrol pumps.
Petrol pump owners also argued that action should instead be taken against oil supply companies and those responsible for planning fuel supply and demand. They said cancelling petrol pump licenses without reason would be unfair.
The global oil crisis may soon affect fuel prices in Pakistan. If international prices continue rising, petrol and diesel could become much more expensive. This may increase transport costs and create pressure on the economy.
