Global oil prices surge amid Middle East supply concerns as Pakistan launches targeted Rs100-per-litre petrol relief for small-vehicle users.
ISLAMABAD: Brent crude oil prices surged above $108 per barrel on Monday as escalating tensions in the Middle East disrupted oil supply routes, while Pakistan announced a targeted petrol relief scheme to cushion lower-income motorists from rising fuel costs.
Brent crude, the international benchmark, was trading 3.68% higher at $108.50 per barrel, while US West Texas Intermediate (WTI) futures rose 3.23% to $103.28 per barrel by 3:41am ET.
Oil prices jumped after Saudi Arabia reportedly shut down a key pipeline that bypasses the Strait of Hormuz, adding to concerns over global crude supplies.
The Saudi decision followed drone attacks launched from Iraq that damaged the East-West pipeline on Thursday. The pipeline is a critical route for transporting Saudi crude without passing through the Strait of Hormuz.
Riyadh has not disclosed the extent of the damage or indicated how long the pipeline will remain out of service, adding to uncertainty in international oil markets.
Pakistan announces Rs100 petrol relief
Against the backdrop of rising global crude prices, Prime Minister Muhammad Shehbaz Sharif on Sunday launched a special fuel relief scheme offering a Rs100 per litre discount on petrol to selected small-vehicle users.
The scheme covers motorcyclists, rickshaw and Chingchi users, as well as owners and users of vehicles with engine capacities of up to 800cc.
The government said the initiative was designed to provide relief to lower-income motorists facing increased fuel costs amid heightened volatility in international oil markets.
Following the latest domestic price revision announced on Friday, petrol is currently being sold at Rs375.82 per litre, after an increase of Rs5.02 per litre. The price of high-speed diesel (HSD) has also increased by Rs5.28 to Rs403.32 per litre.
Rs100 relief for motorcycles and rickshaws
Under the scheme, users of motorcycles, rickshaws, Chingchis and other two- and three-wheelers will receive Rs100 per litre relief on purchases of up to 20 litres of petrol per month.
This translates into maximum monthly relief of Rs2,000 for eligible two- and three-wheeler users.
Prime Minister Shehbaz said the government was fully aware of the pressure created by rising international oil prices and would take measures to protect the public from the impact.
The targeted subsidy is intended to shield lower-income motorists from part of the increase in petrol costs while global energy markets remain volatile.
Global oil prices add pressure on Pakistan
The latest surge in crude prices highlights the difficult policy environment facing Pakistan, where domestic petroleum prices remain closely linked to international oil prices and developments affecting global supply and shipping routes.
A prolonged disruption to major oil transportation routes could keep international crude prices elevated, potentially increasing pressure on Pakistan’s import bill and domestic fuel prices.
The government’s Rs100-per-litre relief scheme therefore comes at a time when rising global crude prices are creating additional challenges for consumers and policymakers alike.