PM Shehbaz decides against fuel price hike amid global market pressure, says PMO

Prime Minister Shehbaz Sharif on Friday decided not to increase petroleum product prices despite a rise in global oil prices, aiming to reduce the financial burden on the public, the Prime Minister’s Office (PMO) said in a statement.

The development comes amid speculations that the government could increase the petroleum prices further tonight.

“No price hike is being made in order to reduce the burden on the common man,” the prime minister was quoted as saying in the PMO statement. “The government will provide as much relief as possible to the people in these difficult circumstances.”

Last week, the government announced a hike of Rs55 per litre in the prices of petrol and diesel in line with increasing international oil prices. The petrol price jumped to Rs321.17 per litre, and the diesel price soared to Rs335.86 per litre.

The international oil prices have increased with the escalating crisis in the Middle East after the United States and Israel launched strikes on Iran, killing its Supreme Leader Ayatollah Ali Khamenei.

Iran retaliated with strikes on Israel as well as US bases in Gulf countries, and announced it wouldn’t allow vessels to pass through the Strait of Hormuz.

Oil prices dipped on Friday as an Indian tanker sailed out of the Strait of Hormuz and the US put forth measures to try and ease supply concerns, but were on track for weekly gains as Gulf disruptions from the Middle East conflict broadly persisted.

Brent futures for May declined 63 cents, or 0.6%, to $99.83 a barrel at 1124 GMT, heading for a weekly increase of 8%. US West Texas Intermediate (WTI) crude for April declined $1.29, or 1.4%, at $94.44 a barrel, set for a 4% uptick for the week.