Pakistan Announces Sharp Hike in Fuel Prices Amid Regional Conflict

Kathmandu. The government of Pakistan has announced a significant increase in the prices of petroleum and high-speed diesel. The price of petrol has been raised by 43 percent, while high-speed diesel has seen a 55 percent hike.

The government stated that this move is in response to rising oil prices in the international market due to the Iran war. "The government has limited resources, and there are no signs of the war ending anytime soon," the country's Petroleum Minister said. 

Pakistan is primarily dependent on imported oil and brings a large quantity through the Strait of Hormuz. Iran has blocked this route. Recently, Pakistan stated it had managed to arrange for some Pakistani-flagged vessels to bring fuel through a safe route in cooperation with Iran.

This is the second price hike since the start of the Iran war. Petrol is now 77 percent more expensive and diesel 87 percent more expensive than before the war. The government has also announced a subsidy scheme for some consumers. 

Finance Minister Muhammad Aurangzeb stated that the government's ability to provide relief is limited due to fiscal constraints. He added that relief can only be provided to a certain extent, and measures will be reviewed weekly with necessary adjustments made accordingly.