Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday indicated that petroleum prices may increase further in the coming days.
His remarks come as consumers are already facing the impact of a sharp rise in fuel prices. The government recently increased petrol and diesel prices by Rs55 per litre, citing rising global oil costs linked to escalating tensions in the Middle East.
Under the new rates, petrol now costs Rs321.17 per litre, while diesel has risen from Rs275.70 to Rs335.86 per litre.
Aurangzeb made the remarks while briefing the Senate Standing Committee on Finance and Revenue meeting, held under the chairmanship of Senator Saleem Mandviwala.
The finance minister said the government was implementing austerity measures on the directions of Prime Minister Shehbaz Sharif, but warned that petroleum prices could rise further in the coming days due to regional developments and global market pressures.
He added that a ministerial committee has been formed by the prime minister to monitor petroleum product prices and supply on a daily basis.
“The situation in the region is changing moment by moment, so quick decisions are required regarding the purchase of petroleum products,” the minister said.
Aurangzeb also informed the committee that Qatar has declared force majeure due to the ongoing war situation, which has disrupted LNG imports. He said an LNG cargo that previously cost around $25 million is now being purchased for nearly $100 million. The minister further said the government is considering shutting down six urea fertilizer plants due to surplus supply as the country currently has higher stocks than last year. He noted that fuel rationing is being implemented in countries like Sri Lanka and Bangladesh, where the situation is more severe.
Meanwhile, opposition leaders strongly criticised the federal government over the massive increase in petroleum prices, warning that the move would further fuel inflation and poverty. In a statement on X, Jamaat-e-Islami chief Hafiz Naeemur Rehman rejected the increase in petroleum prices and termed the decision unacceptable. He argued that when global oil prices had fallen to a five-year low in recent months, the government increased the petroleum levy instead of providing relief to citizens. Now that prices are rising again, the burden is once more being shifted onto the public, he added.