Fuel Crisis Alert: Petrol and Diesel Prices Set to “Skyrocket” Before Next Scheduled Update, Pakistan is bracing for a massive surge in petroleum prices as the government considers shifting from a fortnightly to a weekly price revision mechanism. Amid the ongoing closure of the Strait of Hormuz and escalating Middle East tensions, officials warn that petrol and diesel prices could skyrocket by Rs. 25 to Rs. 50 per litre well before the next scheduled update on March 15.
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The “Hormuz Factor” and Rising Costs
The primary driver behind this anticipated hike is the disruption of global energy trade routes. The closure of the Strait of Hormuz has forced oil marketing companies (OMCs) to seek alternative, more expensive routes, leading to:
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Surging Insurance Premiums: Insurance for oil vessels has jumped from $30,000 to nearly $400,000 per vessel.
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Freight Rate Hikes: Shipping costs have surged past $4 million per shipment, compared to the pre-crisis rate of $900,000.
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Weekly Pricing Shift: To prevent OMCs from facing financial collapse, the Economic Coordination Committee (ECC) is reviewing a proposal to pass these costs to consumers on a weekly basis.
Projected Price Increases
Industry sources and initial government estimates suggest the following potential impact if the weekly mechanism is approved:
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High-Speed Diesel (HSD): Expected to rise by Rs. 45 – Rs. 50 per litre.
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Petrol (Motor Spirit): Expected to rise by Rs. 25 – Rs. 32 per litre.
Stock Levels and Contingency Plans
Despite the looming price hike, the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Energy have assured the public that the country currently holds 500,000 tons of both petrol and diesel—enough for approximately 25 to 26 days of national consumption.
To secure future supplies, Pakistan State Oil (PSO) has already:
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Floated tenders for oil imports routed outside the Strait of Hormuz.
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Requested Saudi Arabia to route supplies through the Red Sea corridor.
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Initiated talks with provincial governments to implement Work-From-Home (WFH) policies to conserve fuel.
Impact on the Public
Coming just days after the March 1 hike (where petrol rose by Rs. 8), another massive increase is expected to trigger a fresh wave of inflation. Transporters have already warned of a nationwide strike, and the cost of essential food items is likely to climb as logistics costs double.
