Petrol and diesel prices in Pakistan have been increased by Rs55 each with immediate effect after the federal government revised petroleum rates amid the ongoing crisis in the Middle East.

With the significant increase of petrol and diesel prices by Rs55 each per litre, the new price of diesel has been fixed at Rs335.86 per litre. The new price of petrol has been fixed at Rs321.17 per litre.

Petroleum Minister Ali Pervaiz Malik said action would be taken against those involved in hoarding petroleum products. He said Prime Minister Shehbaz Sharif had taken notice of reports regarding the hoarding of fuel.

The minister said that, at present, no immediate shortage was visible, though the country was passing through extraordinary circumstances.

Oil price surge prompts difficult decision on fuel rates

He said a large portion of energy supplies arrives through the Strait of Hormuz, where disruption has occurred, adding that a vessel of the Pakistan National Shipping Corporation (PNSC) is currently on its way to the Port of Fujairah.

He added that Saudi Aramco has indicated that if a large tanker is provided, it would be stationed within Pakistan’s waters to ensure a steady supply of oil.

"Earlier, oil traded at $78 per barrel, while diesel stood at $88 per barrel. Prices have since risen sharply. On the sixth, petrol reached $106 and 80 cents per barrel, while diesel approached $150 per barrel."

In view of the surge, he said, a difficult decision on increasing prices has been taken.

Deputy Prime Minister Ishaq Dar said the prime minister and the field marshal were making efforts to stabilise the situation. He said it was too early to say how long the war conditions would take to subside.

Dar said Pakistan remained in contact with friendly countries over the past week in an effort to help control the situation arising from the conflict. He added that the prime minister had held meetings on the matter earlier in the day.

He said global oil prices had risen and the entire region was facing war-like conditions.

Meanwhile, Finance Minister Muhammad Aurangzeb said the government had been reviewing the situation for the past five to six days. He added that meetings would be held with the chief ministers of all four provinces.