Soaring Jet Fuel Costs Propel Airfares Amid Pakistan's Energy Crisis

Pakistan has raised jet fuel prices for the fifth time in a month amid a West Asia oil crisis. The hike drives air ticket prices up as airlines struggle with increased operational costs. Domestic and international fares surge, exacerbating the nation's ongoing inflation and economic challenges.

The Government of Pakistan announced another increase in jet fuel prices on Saturday, marking the fifth hike in just 28 days. Citing the ongoing oil crisis in West Asia, officials attribute this escalation to volatile global energy markets as the price per litre reaches PKR 476.97, a dramatic increase from PKR 188 at the month's start according to The Express Tribune.

This surge is already impacting airlines, who are forced to raise ticket prices in response to soaring operational costs, industry insiders revealed. Shortages in jet fuel and limited oil reserves are key factors behind the price hike, with experts warning that further increases in operating expenses could lead to additional fare hikes.

Market reports indicate that domestic one-way fares for major routes like Karachi-Islamabad and Karachi-Lahore are climbing to PKR 40,000. International fares to destinations such as the Middle East and major Western cities have sharply increased, heavily impacting consumer budgets amid broader economic strains.

The jet fuel price surge is part of wider fuel tax changes, including a PKR 200 rise in levies on high-octane petrol for luxury vehicles, contributing to existing inflation pressures. These hikes coincide with increased costs of diesel and petrol, exacerbating living expenses as transport and daily necessities prices rise.

Furthermore, there have been reports of tensions at petrol stations, where attendants allegedly limit fuel sales to quantities of at least one litre, amid these economic constraints, The Express Tribune reported.

(With inputs from agencies.)