Earthquake in neighboring Pakistan due to Iran war: Increase in the price of petrol and diesel, long queues at petrol pumps.
Islamabad. The Government of Pakistan increased the price of petrol and ‘high-speed diesel’ by 55 Pakistani rupees per liter, the biggest increase till date. This shows the economic impact after the Iran war. Pakistan’s Petroleum Minister Ali Pervez Malik, Deputy Prime Minister and Foreign Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb announced the price increase in a press conference held just before midnight on Friday.
He also assured that the country has sufficient reserves of petroleum. After this increase, the ex-depot price of ‘High-Speed Diesel’ has been fixed at 335.86 Pakistani rupees per liter for the coming week, which was earlier 280.86 rupees per liter i.e. an increase of about 20 percent. Similarly, the ex-depot price of petrol has been increased from Rs 266.17 per liter to Rs 321.17 per liter, which represents an increase of about 17 percent.
According to ‘The Dawn’ newspaper, Malik said that the ongoing conflict in West Asia has created uncertainty across the region, which has affected global energy supplies and prices. “The fire that started in a neighboring country has now spread to the entire region,” he said. We do not know how long this crisis will last and there is no clear timeline for its end.” He also said that Pakistan is dependent on the route through the Strait of Hormuz for oil supplies, which has been affected by the current conflict.
The minister said the government is monitoring the supply situation and warned of strict action against those hoarding petroleum products or creating artificial shortage. He also informed that two oil vessels of Pakistan were coming through alternative routes. Malik said that in view of the fluctuations in the international market, the government will now review petroleum prices weekly. He said, “As soon as the international situation improves, we will reduce the prices equally quickly.”
Earlier, Dar said that due to this crisis, global oil prices have increased by 50 to 70 percent. He said, “In many countries, prices automatically increase but we have tried to put minimum burden on consumers and find a balanced solution.” Finance Minister Aurangzeb reiterated that at present Pakistan has “sufficient” reserves of petroleum and the country’s economic condition is stable. However, he said that policy makers will keep a constant eye on the situation.
Dawn newspaper also reported that the decision came as the government put on hold a national action plan proposed on Friday that included measures such as work from home and distance learning to deal with a possible fuel crisis. Instead it was decided to continue normal activities for at least a week. Before the announcement of the price increase, long queues formed at petrol pumps in many cities, as drivers rushed to fill their vehicles’ tanks to get cheaper fuel.
Earlier, the decision to postpone arrangements like work from home and distance learning was taken in a high-level meeting held on petroleum products reserves, which was chaired by Prime Minister Shehbaz Sharif. A source close to the meeting told Dawn, “It was decided in the meeting that the plan for work from home and distance learning should be postponed for at least a week, as the existing petroleum reserves are enough to meet the country’s needs.
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