As conflict is growing in Middle East, between US-Israel and Iran after the killing of Iranian’s Supreme Leader, Petrol prices are rising vividly. Iran closed Strait of Hormuz which is world’s most critical oil route in the world. About 20% of the World’s total oil supply passes through this waterway every day, and Strait of Hormuz is the way through which not only Iran exports but a large portion of the World’s oil passes through it. It connects Gulf of Oman and Arabian Sea, so it allows oil tankers to reach to the global markets.
https://www.tekgen.pk/us-israel-strikes-on-iran-atheir-impact-on-global-markets/
Pakistan is the country that produces very small portion of crude oil and refined fuels and to meet public demand Pakistan heavily relies on imported fuel. As you know oil prices increased globally BECAUSE OF Regional tensions so just to avoid fiscal deficit and to maintain stability government of Pakistan raised fuel prices by RS:55 PER LITRE.
However, DPM said Authorities will find out solution to solve this inflation. Further, they advised people to not panic as country has sufficient reserves available.
Also, petroleum Minister said that Government will review these prices on weekly basis. From these statements one can assume that the increase of petrol price directly linked to the escalated tensions between Us-Israel and Iran which means we can expect for more price increase if Iran does not allow shipments to pass through significant pathway. If this war continues, then high fuel prices are almost going to cause inflation in each and every sector of economy.
Pakistan is already going through many ups and downs, and to be cherry on top this problem arrived, increased fuel and petrol prices going to increase transportation cost .The public is going to face problems they never thought would arise, small business owners who were hardly managing their logistic expenses now will have to overlook on these expenses as inflation is going to affect their personal budget harshly. Even operating costs of stable businesses are expected to rise. Residents are going to face Load Shedding if the war continues in the long run, because we need fuel for electricity generation.
Shortly we can say that the diesel fuel and petroleum increase was influenced by rising global oil prices. In response to rising geopolitical tensions and international crude oil costs, the government of Pakistan held meeting with OGRA( Oil and Gas regulatory Authority), Which regulates petroleum prices in Pakistan.
OGRA is the short word used for OIL and GAS Regulatory authority. Their duty is to look for international oil prices, import costs, exchange rates and petroleum levies and review it and make a proposal for approval of government. OGRA makes sure they are presenting the best solution for the country while preventing Fiscal deficit, inflation and working towards stability. This time OGRA decided to increase RS:55 PER LITRE in march 2026 as surging global oil prices in order to maintain stability. After reviewing OGRA’s proposal government approved the alteration earlier this day and official authorities announces it on broadcasting channels.
Officials explained that the adjustment was necessary to keep domestic fuel prices aligned with global market rates. The move also aimed to avoid fiscal deficit and maintain stability in country’s energy Sector. The announcement was made by petroleum Minister Ali Pervaiz Malik in a press conference alongside DPM Ishaq Dar and Finance Minister Muhammad Aurangzaib.
During broadcast, Malik said:
“we will review these prices on daily basis”, he assured that as soon as the global tension improved, oil supply gets back to normal, fuel price will gets its stability back globally we will promptly reduce oil prices back to its normal.
He added, “We are going through harsh circumstances today and it becomes necessity to take this step that’s why we have taken the difficult decision.”
He also mentioned that strict action will be taken against those who stop selling petrol illegally in order to make extra profits. Geo news stated
Al Jazeera reported that long queues formed at fuel stations in Pakistan ahead of a Government announcement to raise prices.https://www.aljazeera.com/
As they said they will review these prices on weekly or daily basis so we can expect further adjustments in accordance with global oil price trends. We can just hope for peace for both countries as war only brings distruction not only to those countries participating actively but to the whole world. As far as the war continues, whole world is going to pay for it potentially but if only the situation gets better we can see betterment in energy markets.
