LAHORE: Petroleum Minister Ali Pervaiz Malik warned on Sunday that petrol prices could reach Rs1,000 per litre if a fuel shortage emerged in Pakistan.
Speaking to journalists in Lahore, Malik said petrol prices had already increased by 50% in Pakistan. He added that fuel prices had also risen sharply in Europe and the United States.
The minister said Houthi attacks were unacceptable and stressed that the government was providing relief to vulnerable groups to reduce the impact of higher fuel prices.
He also said work had started on oil wells and the government expected to discover domestic crude oil by October. The discovery could help Pakistan reduce its reliance on costly oil imports.
Global oil market faces fresh pressure
The warning came as global oil markets faced renewed volatility following escalating tensions in the Middle East and Houthi attacks on Saudi Arabia.
The situation has also raised concerns about disruptions to energy shipments after the closure of the Strait of Hormuz.
The escalation followed the collapse of a fragile ceasefire reached between Tehran and Washington in June. Houthi attacks on Saudi Arabia’s civilian and economic infrastructure have added further pressure to global energy markets.
Following the latest price revision, petrol is being sold at Rs389.14 per litre in Pakistan. High-speed diesel is priced at Rs424.04 per litre.
Government expands fuel relief scheme
The government has introduced measures to provide relief to low-income fuel consumers amid rising prices.
Prime Minister Shehbaz Sharif launched a special scheme last Sunday, offering a Rs100 per litre discount on petrol for motorcyclists, rickshaw and Chingchi drivers, and owners and drivers of vehicles up to 800cc.
Federal Minister for IT and Telecommunication Shaza Fatima later announced three changes to the scheme.
Under the revised eligibility criteria, motorcycles registered from January 1, 2006, are now eligible. The previous cutoff was January 1, 2011.
The government also removed the previous five-litre limit per token. Eligible two- and three-wheeler users can now purchase fuel according to their requirements.
Each eligible beneficiary can receive four tokens per month. Each token provides Rs500 in fuel relief.
“For example, if two litres of petrol cost Rs780, the beneficiary would pay Rs280 after applying the Rs500 relief token,” Fatima explained.
The government has also abolished SMS charges for all beneficiaries under the scheme.
Fatima said more than 1.75 million people had registered under the scheme by 3pm. Around 1.5 million fuel relief tokens had been generated, while more than 680,000 tokens had already been redeemed at petrol stations.
