‘Petrol bomb’ falls on Pakistan amid war

• Prices of petrol and diesel increased by Rs55 per litre• Levy on petrol raised, diesel lowered by Rs20 each• ‘Highest-ever hike’ announced mere hours after govt assured adequate fuel stocks• Move comes as crude prices drift closer to psychological barrier of $100 per barrel on international market• Proposed fuel conservation plan, including ‘work from home’ and online learning, deferred• PM asks provincial govts to crack down on hoarding of petroleum products

ISLAMABAD: Pakistan felt the first direct economic impacts of the US-Israel war on Iran in a big way on Friday, as the government announced a Rs55 per litre increase in petrol and high-speed diesel prices, mere hours after PM Shehbaz Sharif and Finance Minister Muhammad Aurangzeb assured the nation that petroleum reserves were sufficient and the situation remained under control.

Earlier on Friday, the government shelved a proposed national action plan that envisaged work from home and distance learning measures in response to a potential fuel crisis, and instead decided to keep normal activities unchanged for at least a week.

The ‘highest-ever’ such hike was announced by Petroleum Minister Ali Pervaiz Malik at a press conference alongside Deputy Prime Minister and Foreign Minister Ishaq Dar and Mr Aurangzeb, though the announcement was not followed by any questions from the media.

Mr Dar said the revised fuel prices would come into effect today (Saturday).

Ahead of the midnight implementation of the price hike, long queues formed at petrol pumps across several cities as motorists rushed to fill their tanks before the new rates took effect. Reports from different parts of the country suggested that some fuel stations temporarily closed their pumps, apparently to avoid selling fuel at the old prices.

The government has increased the petroleum development levy (PDL) on petrol by Rs20 to about Rs105 per litre to offset what would otherwise have been a higher increase in diesel prices. Meanwhile, the levy on high-speed diesel was reduced to Rs57 per litre from Rs77.

As a result, the ex-depot price of high-speed diesel was fixed at Rs335.86 per litre for the coming week, up by about 20pc from Rs280.86 per litre. Likewise, the ex-depot price of petrol was revised to Rs321.17 per litre from Rs266.17 per litre, reflecting an increase of around........

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