Petroleum Minister Ali Pervaiz Malik on Sunday warned that petrol prices can soar to Rs. 1,000/liter in case of a fuel shortage, acknowledging that petroleum prices had risen by 50% in Pakistan amidst supply disruptions caused by renewed hostilities in the Middle East.
Addressing a press conference in Lahore, he noted fuel prices are currently rising globally, including in Europe and the United States. He described the attacks on Saudi oil facilities by Yemen’s Houthis as unacceptable, stressing the government is striving to reduce the impact of rising fuel costs on vulnerable segments of society through relief measures.
Malik said work had begun on oil wells and the government expected to discover domestic crude oil by October, which could help reduce reliance on expensive imports.
The minister’s warning follows surging fuel costs under the daily price fixation mechanism introduced in July. Under the most recent revision, applicable through Sept. 21, petrol retails for Rs. 389.14/liter and diesel for 424.04/liter.
To cushion the impact of the prices, Prime Minister Shehbaz Sharif has introduced a special relief scheme providing a Rs. 100/liter subsidy on petrol for motorcyclists, rickshaw and Chingchi owners, and drivers of vehicles up to 800cc. The government claims over 1.75 million citizens have registered under the scheme and are availing the scheme.