Pakistan raises retail fuel prices by about 20% due to Middle East tension

Pakistan on Friday raised consumer prices for diesel and petrol about 20%, citing higher oil prices driven by conflict in Iran.

In a televised video message, Petroleum Minister Ali Pervaiz Malik announced a historically large 55-rupee ($0.20 a liter) increase to 321.17 rupees for petrol and 335.86 rupees for diesel.

“We have taken this decision under compulsion because of a sharp surge in petroleum prices globally,” the minister said.

The decision is likely to ripple through to higher inflation and hit Pakistan's impoverished population.

Before the announcement, fuel stations in major cities like Lahore and Karachi had long lines of people waiting to fill up.

Queuing at a Lahore station, business owner Imran Hussain said he wanted to be prepared in case of a shortage. “I have been waiting for my turn for the last 70 minutes,” he said.

Prime Minister Shehbaz Sharif on Friday warned against fuel hoarding and said hoarders would be punished.

“We have sufficient petrol reserves. But we are planning to stretch them because we don’t know when the Middle East crises will end,” said the minister.

Pakistan imports oil mainly from Saudi Arabia and the UAE through the Strait of Hormuz.

The government will reassess prices weekly, the oil minister said.

-Mubasher Bukhari/Reuters