Government cites Middle East tensions, Strait of Hormuz disruptions and rising crude prices as reasons behind petroleum price increase
The government on Thursday defended the recent increase in petroleum prices, citing escalating tensions in the Middle East, disruptions in global supply chains and rising international crude oil prices linked to instability around the Strait of Hormuz.
Speaking at a special briefing organised by the Parliamentary Forum on Energy and Economy at the Pakistan Institute for Parliamentary Services, Federal Parliamentary Secretary for Information and Broadcasting Barrister Danyal Chaudhry said Pakistan’s heavy dependence on imported fuel left the country vulnerable to global geopolitical developments and fluctuations in international energy markets.
He warned that tensions involving the United States and Iran, coupled with uncertainty surrounding the Strait of Hormuz, had significantly increased global oil prices and created pressure on energy-importing economies such as Pakistan.
“The government adjusted petroleum product prices in response to extraordinary international pressures to protect the country’s energy needs and maintain fiscal balance,” he said.
Barrister Danyal added that energy policy should now be viewed not only as an economic issue but also as a matter closely linked to national security, public confidence and overall state stability.
Referring to the latest increase in fuel prices, he said international crude oil prices had surged sharply, contributing to more than a 55% increase in domestic petroleum prices.
Despite the difficult circumstances, he said the government had attempted to cushion the impact on consumers while maintaining fiscal discipline under the International Monetary Fund (IMF) programme, including adjustments related to the Petroleum Development Levy (PDL).
The parliamentary secretary also rejected criticism portraying the increase solely as a policy failure, arguing that international conflict and global supply disruptions were the primary drivers behind the rise in fuel costs.
He said the government was pursuing a transparent communication strategy to counter misinformation and propaganda surrounding the issue.
Highlighting broader structural concerns, Barrister Danyal said the global energy crisis had exposed weaknesses in Pakistan’s energy sector and underscored the need to reduce dependence on imported fossil fuels.
He said the country must accelerate its transition toward affordable, locally sourced and sustainable energy alternatives to strengthen long-term energy security.
Representatives from China Pakistan Caiyu Economic Development Private Limited and Shaanxi Xinghuo Industrial Group also attended the briefing.
