Pakistan has announced a sharp 200% increase in high-octane fuel prices in response to the global fuel crisis triggered by Iran’s closure of the Strait of Hormuz, ARY News reported. The price per litre of high-octane fuel has surged from PKR 100 to PKR 300, marking the second significant hike in less than 20 days.
The government’s decision follows earlier increases in petrol and diesel prices, with a PKR 55 rise implemented on March 6. Alongside the fuel price adjustments, Pakistan has introduced austerity measures aimed at mitigating the economic impact of rising oil costs. These measures include a shift to online classes for students and work-from-home directives for government employees.
Prime Minister Shahbaz Sharif approved the substantial increase during a high-level meeting that reviewed fuel pricing and economic relief measures. Senior ministers from his cabinet attended the meeting, which aimed to balance fiscal pressures with the need to shield the general public from extreme price shocks. According to ARY News, the hike is primarily targeted at luxury car owners and is not expected to affect public transport fares or air travel.
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The fuel crisis stems from Iran’s restrictions on vessel movement through the Strait of Hormuz, a strategic maritime corridor that handles more than 20% of the world’s crude oil shipments. The situation escalated after US President Donald Trump issued an ultimatum, warning that American forces would target Iranian power plants if the Strait remained closed. In response, Iran stated it would “completely close” the Strait should its facilities be attacked.
The uncertainty has caused a surge in global oil prices, prompting several countries, including Sri Lanka, Bangladesh, Vietnam, and Thailand, to announce fuel price hikes and implement austerity measures. Pakistan’s decision mirrors similar steps taken in the region, reflecting the broader economic pressure generated by geopolitical tensions in the Middle East.
India has so far avoided any fuel price increases despite the crisis. In Pakistan, however, the latest measures underscore the government’s efforts to manage energy costs while attempting to protect essential services and the broader population from the full brunt of rising international oil prices.
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