Pakistan Faces Fuel Price Surge Amid Global Oil Market Turbulence

Pakistan has hiked kerosene oil prices by PKR 4.66, taking the new rate to PKR 433.40 per litre. Despite international oil market disruptions, petrol and diesel prices remain stable. The increase adds strain to households as both aviation and domestic fuel costs soar, impacting inflation and living expenses.

The Pakistani federal government has raised the price of kerosene oil by PKR 4.66 per litre, setting the new price at PKR 433.40 per litre, effective from March 28. This decision, reported by The Express Tribune, contrasts with stable petrol and diesel rates, which remain at PKR 321.17 and PKR 335.86 per litre respectively, amid fluctuating global oil markets.

In an effort to buffer consumers from international price volatility, authorities disclosed that the government is absorbing some cost burdens. The Petroleum Division's notification detailed payments of PKR 95.59 per litre for petrol and PKR 203.88 per litre for diesel to oil marketing companies.

The development ties into wider concerns about rising fuel costs and their inflationary impact. The government also increased jet fuel prices for commercial passenger aircraft, marking the fifth hike in 28 days due to West Asia's ongoing conflict. This adjustment, as reported by Pakistan State Oil, raises jet fuel prices to PKR 476.97 per litre, a significant jump from PKR 188 at the start of March.

Airlines have already escalated ticket prices in response to the spike in aviation fuel costs, driven by limited reserves and volatile markets, as reported by officials and industry sources. Domestic fares on popular routes and international flights have seen substantial price rises, intensifying inflationary pressures on household finances.

(With inputs from agencies.)