Petrol may reach Rs1,000 if shortage hits Pakistan, minister warns

Petroleum Minister Ali Pervaiz Malik has warned that petrol prices in Pakistan could rise to as much as Rs1,000 per litre if the country faces a fuel shortage.

Speaking to journalists in Lahore on Sunday, the minister said global oil markets were facing significant volatility because of the worsening situation in the Middle East.

Malik said petrol prices in Pakistan had already increased by around 50% amid fluctuations in international oil markets. He added that consumers in Europe and the United States were also facing higher fuel costs.

The minister said the government was taking measures to protect vulnerable sections of society from the impact of rising petroleum prices. He also described attacks on Saudi Arabia’s civilian and economic infrastructure as unacceptable.

At the same time, Malik said efforts were underway to increase domestic oil production. Work on oil wells has started, and the government expects a potential domestic crude oil discovery by October.

The minister said increased local production could help Pakistan reduce its dependence on costly imported oil and strengthen energy security.

The warning comes as international oil markets remain under pressure amid renewed hostilities in the Middle East and concerns over the disruption of energy shipments through the Strait of Hormuz.

Pakistan’s latest fuel prices currently stand at Rs389.14 per litre for petrol and Rs424.04 per litre for high-speed diesel.

The government has also introduced measures to provide relief to lower-income motorists affected by higher fuel costs.

Prime Minister Shehbaz Sharif recently launched a fuel relief programme offering a Rs100-per-litre discount on petrol for motorcyclists, rickshaw and Qingqi drivers, as well as owners and drivers of vehicles with engines up to 800cc.

The scheme was subsequently revised to expand its coverage. Federal Minister for IT and Telecommunication Shaza Fatima announced that motorcycles registered from January 1, 2006, would now qualify, replacing the earlier 2011 registration cut-off.

Another change removed the previous five-litre purchase limit attached to each token. Eligible two- and three-wheeler users can now purchase fuel according to their requirements.

Under the revised system, beneficiaries can receive four tokens each month. Every token provides Rs500 in fuel relief.

Fatima explained that a customer buying two litres of petrol worth Rs780, for example, would receive Rs500 in relief and pay Rs280.

The government has also removed SMS charges under the programme. Messaging services are now free for beneficiaries regardless of their vehicle category.

According to Fatima, more than 1.75 million people had registered for the scheme by 3pm, while around 1.5 million fuel relief tokens had been generated. More than 680,000 tokens had already been used at petrol stations.

The government is continuing to monitor developments in global oil markets while pursuing domestic exploration as it seeks to limit the impact of international fuel price shocks on consumers.