Pakistan Fuel Prices: Kerosene Soars 70% After Petrol Hike
Pakistan Raises Kerosene Price by Nearly 70 Percent Amidst Broader Fuel Hikes
ISLAMABAD – The Pakistani government quietly increased the price of kerosene by almost 70 percent on Saturday, , following a substantial increase in petrol and high-speed diesel prices announced the previous day. The move, detailed in a notification issued by the Oil and Gas Regulatory Authority, raises the price of kerosene to PKR 318.81 per litre, an increase of PKR 130.08.
The price hike takes effect immediately, according to the notification, marking a significant jump from the previous price of PKR 188.73 per litre, which was in effect as of .
Kerosene remains a crucial fuel source for households in remote areas of Pakistan where access to liquefied petroleum gas (LPG) cylinders is limited. However, its overall demand is significantly lower than petrol and diesel, with monthly sales of approximately 10,000 tonnes compared to 700,000 to 800,000 tonnes for the more widely used fuels.
The kerosene price increase comes just hours after Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb assured the nation that Pakistan possessed sufficient petroleum reserves and that the fuel supply situation was under control. The government also decided to shelve a proposed national action plan that considered measures like work-from-home arrangements and distance learning in anticipation of a potential fuel crisis, opting instead to maintain normal activities for at least a week.
The announcement of the petrol and diesel price increases on Friday triggered a rush on fuel stations across several cities, as motorists sought to fill their tanks before the new rates came into effect. Reports indicated that some fuel stations temporarily suspended sales, reportedly to avoid selling fuel at the older, lower prices.
The broader context of the price hikes is linked to the ongoing conflict in West Asia, which has created uncertainty in the region and impacted global energy supply and prices. Pakistan relies on oil supplies that transit through the Strait of Hormuz, an area directly affected by the current instability. Petroleum Minister Ali Pervaiz Malik stated that the situation was volatile and offered no clear timeline for resolution.
The price of high-speed diesel was fixed at PKR 335.86 per litre, representing a roughly 20% increase from PKR 280.86 per litre. Petrol prices were revised to PKR 321.17 per litre, up approximately 17% from PKR 266.17 per litre. These represent the highest-ever increases in petrol and diesel prices in Pakistan, with the petrol hike amounting to PKR 55 per litre and the diesel hike also at PKR 55 per litre.
The government has warned against hoarding and artificial shortages of petroleum products and indicated it will take strict action against those found to be engaging in such practices. The situation remains fluid and the government is monitoring the supply side closely.