Pakistan has implemented a historic increase in kerosene prices, raising the rate by Rs130.08 per litre and setting the new price at Rs318.81 compared to the previous rate of Rs188.73. The revision was confirmed through an official notification issued on Saturday, with the updated pricing structure taking effect immediately from the same day.
The significant adjustment comes shortly after the federal government revised petrol and diesel prices upward by Rs55 per litre, citing sharp fluctuations in global oil markets. Authorities linked the domestic price revision to escalating geopolitical tensions in the Middle East, particularly the conflict involving the United States, Israel, and Iran, which has intensified uncertainty across global energy supply routes.
The announcement regarding the broader petroleum price revision was made during a press conference led by Petroleum Minister Ali Pervaiz Malik. He addressed the media alongside Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb, outlining the government’s position on the surge in international crude prices and its direct impact on Pakistan’s energy import bill.
Under the latest adjustment, the price of petrol has been set at Rs321.17 per litre, rising from the earlier rate of Rs266.17. High-speed diesel has also been revised upward, reaching Rs335.86 per litre compared to its previous price of Rs280.86 following the government’s review.
The pricing revision marks a shift in the government’s fuel pricing mechanism as well. Historically, petroleum product prices in Pakistan were reviewed every two weeks, but the current situation has prompted authorities to conduct weekly price assessments. This change comes as global oil markets face heightened volatility following developments that threaten a substantial portion of the world’s energy transport routes.
One of the key triggers for the current surge in fuel prices is the disruption to shipping activity through the Strait of Hormuz, a strategic maritime passage that handles a major share of global oil trade. Ongoing military escalation in the region has significantly impacted energy logistics, raising concerns among international markets and pushing crude oil prices sharply higher.
Alongside the adjustments to petroleum product prices, the government has also revised the petroleum development levy structure. The levy on petrol has been increased from Rs84.40 per litre to Rs105 per litre, while the levy applied to high-speed diesel has been reduced from Rs76.21 per litre to Rs55 per litre.
Officials say the changes are part of broader fiscal and energy management measures aimed at maintaining stability in the domestic fuel supply chain while managing the impact of rising global energy costs. Pakistan remains heavily dependent on imported petroleum products, making its fuel pricing structure particularly sensitive to international market developments.
Global oil prices have surged rapidly during the past week as geopolitical tensions intensified across the Gulf region. Military developments involving the United States and Israel targeting Iran, along with retaliatory actions by Tehran across regional waters, have unsettled global energy markets and disrupted transport routes.
The situation escalated further after U.S. President Donald Trump stated that only the unconditional surrender of Iran would bring an end to the ongoing conflict in the Middle East. The statement came as crude oil prices jumped by approximately 8.5 percent on Friday alone and recorded an overall weekly increase of nearly 30 percent.
These developments have had a cascading effect on countries that rely heavily on imported energy, including Pakistan. Analysts note that continued instability in global oil supply routes could maintain upward pressure on fuel prices in the coming weeks, potentially influencing transportation costs, industrial operations, and broader economic activity within the country.
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