Pakistan’s government has raised petrol prices by 43% and high speed diesel by 55% overnight, saying it was due to increasing oil prices caused by the war in Iran.

The country’s petrol minister says the government has “limited resources and there is currently no end in sight to the war”.

Pakistan is highly dependent on imported oil and gets large quantities through the Strait of Hormuz. Recently, Pakistan said it has been able to arrange safe passage for some Pakistan flagged ships through the Strait with Iran, which has effectively closed the route.

This is the second increase in prices since the war began; petrol is now 77% more expensive and diesel 87% more than before the conflict began. There will be some subsidies for certain users. Motorcyclists will receive a subsidy of Rs100 per litre on up to 20 litres of petrol per month for the next three months.

Intercity public transport operators will get Rs100 per litre subsidy on diesel, while passenger bus services will be eligible for up to Rs100,000 per month. Farmers with smaller plots will be given a one time payment of 1,500 rupees per acre during harvest season.

For goods transport, including trucks, a monthly fuel subsidy of up to Rs70,000 will be given. 

In addition, the government will extend support to Pakistan Railways to help keep fares under control.

Finance Minister Muhammad Aurangzeb said the government’s ability to offer relief is limited due to financial constraints, adding that any concessions can only go to a certain extent. He added that the measures will be reviewed on a weekly basis, and adjustments will be made accordingly.

Source: BBC
--Agencies