Pakistan: Queues At Fuel Stations Amidst Petroleum Shortage, Unprecedented Price Hike
By Nasir Aijaz
The AsiaN Representative
ISLAMABAD: In a late-night move that has sent shockwaves across the country, the Pakistan government on Friday announced a massive, unprecedented hike of PKR55 per liter in the prices of both petrol and high-speed diesel (HSD).
The announcement, effective from midnight Saturday, March 7, came as a “petrol bomb” for a nation already gripped by panic over rumors of a total supply collapse due to the intensifying war in the Middle East.
During a high-level press briefing, Petroleum Minister Ali Pervaiz Malik, flanked by Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb, confirmed the new rates:
Petrol Increased to PKR321.17 (1.16 US Dollar) per liter, from PKR266.17 (0.96 US Dollar).
High-Speed Diesel: Increased to PKR335.86 (1.21 US Dollar) per liter from PKR280.86 (1.01 US Dollar).
Officials cited a “principled decision” to shift from a fortnightly to a weekly review mechanism to keep pace with the extreme volatility in global oil markets.
The news triggered scenes of absolute chaos at fuel stations across the country. Throughout Friday, rumors of an impending supply suspension caused by the closure of the Strait of Hormuz led to mass panic buying.
In major cities, traffic came to a standstill as hundreds of motorists queued for hours, hoping to fill their tanks before the midnight deadline.
Many stations reportedly ran out of stock or were forced to limit sales to PKR1000 (3.60 US Dollars) per vehicle.
The Pakistan Petroleum Dealers Association (PPDA) had earlier warned that supplies from oil marketing companies had dropped by 50% for petrol and 80% for diesel, leading to fears of a complete shutdown by Monday.
Deputy PM Ishaq Dar attributed the hike directly to the escalating Middle East conflict involving the US, Israel, and Iran. He noted that global petroleum prices have surged between 50% and 70% in the past week alone, with crude oil touching $90 per barrel.
“We are making every effort to pass on the minimum possible effect to the end consumer,” Dar stated, adding that the government is in active contact with Gulf and Central Asian partners to secure alternative supply routes.
As public anger mounts, Prime Minister Shehbaz Sharif has ordered a nationwide crackdown on “artificial shortages.”
The Oil and Gas Regulatory Authority (OGRA) insists the country holds 28 days of reserves and that any shortage is the result of illegal hoarding by dealers anticipating the price hike.
District administrations have been directed to physically inspect depots and retail outlets to ensure fuel is being sold at notified rates.
The sharp increase is expected to trigger a fresh wave of inflation, with transportation costs and food prices projected to rise sharply starting today.
