Will petrol price decrease in Pakistan?

As global tensions between the United States (US), Israel, and Iran, significantly impacted global energy markets. As a result of the ongoing war, multiple countries like Bangladesh, Turkey, Pakistan, and more are facing increasing petroleum prices and potential fuel supply challenges. 

To tackle these challenges, Prime Minister Shehbaz Sharif announced austerity measures, including temporarily halting salaries for cabinet ministers. “The entire region is currently in a state of war,” said the prime minister, adding that Pakistan was making every effort through diplomatic channels to help resolve the situation. 

These austerity measures are designed to avoid any kind of fuel shortage, and ensure adequate reserves are managed carefully while navigating volatile international supply chains. 

The ongoing war created irregularity in fuel prices due to fears of supply disruptions, particularly around key routes like the Strait of Hormuz, which controls a major share of global oil shipments.

In Pakistan, the recent increase in petrol prices has led to a significant hike in bus fares, air ticket prices, and other transportation costs, as these sectors heavily depend on imported fuel.

Will petrol price increase in Pakistan?

The federal government on Tuesday announced that Pakistan has "largely secured" petrol cargoes for March and April, in the line to stabilise prices and supply chains amid the ongoing war in the Middle East.

During a high-level meeting of the committee monitoring petrol prices, chaired by Finance Minister Muhammad Aurangzeb, where participants reviewed energy supply situation and assess developments in global oil and gas markets, read a statement issued by the finance ministry.

Eyeing the current situation globally, it is unlikely that petrol prices in Pakistan will decrease in the near future. Currently, the petrol price in Pakistan is Rs321.17 per litre and diesel costs Rs335.86 per litre. 

Following the increase in petroleum product prices, PM Shehbaz announced an austerity and fuel conservation plan to mitigate the impact of rising fuel costs.

Since then, the federal government has kept petroleum product prices unchanged in two consecutive weekly reviews of rates.