Pakistan hikes high-octane fuel price by 200% as Hormuz tensions hit oil supply

Pakistan has sharply raised the price of high-octane fuel, tripling the levy to PKR 300 per litre from PKR 100, as tensions in the Middle East and disruptions around the Strait of Hormuz continue to strain global oil supplies.

The decision was cleared by Prime Minister Shehbaz Sharif during a high-level meeting on Sunday, where the government reviewed fuel pricing and broader economic relief measures. The steep hike, an increase of PKR 200 per litre, targetted high-octane fuel typically used in luxury vehicles.

"This decision will save the government 9 billion rupees monthly, and in accordance with the Prime Minister's directive, relief will be provided to the public from these savings. This decision will reduce the burden on the economy, as the wealthiest class of the country will bear the load," Sharif said in an official statement.

The move, Sharif said, is not expected to affect public transport fares or air travel costs, offering some cushion to the general public despite the broader inflationary pressure.

Senior members of the federal cabinet attended the meeting, including Law Minister Azam Nazir Tarar, Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, and Petroleum Minister Ali Pervaiz Malik, along with other top officials.

The latest increase followed an earlier revision on March 6, when petrol and diesel prices were hiked by PKR 55 per litre amid a surge in global oil rates driven by the ongoing US-Israel conflict with Iran.

At the time, Petroleum Minister Ali Pervaiz Malik, flanked by Deputy Prime Minister Ishaq Dar and Finance Minister Aurangzeb, announced the revised rates.

Post that hike, petrol prices climbed to PKR 321.17 per litre from PKR 266.17, while diesel rose to PKR 335.86 per litre from PKR 280.86.

The ripple effects have already been felt in the aviation sector. By March 10, Pakistani airlines had raised fares in response to higher jet fuel costs. Domestic ticket prices went up by PKR 2,800 to PKR 5,000 on key routes such as Karachi-Lahore and Karachi-Islamabad.

travel saw even steeper increases, with fares jumping between PKR 10,000 and PKR 28,000. Flights to destinations across the Middle East and Central Asia recorded hikes of around PKR 15,000.

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