Pakistan’s Finance Minister Mohammad Aurangzeb has warned that escalating tensions in West Asia could increase the country’s monthly oil import bill by USD 600 million. The statement comes as the global oil market reacts sharply to the ongoing crisis, and crude oil prices crossed the USD 100 mark on Monday. International benchmark Brent crude touched USD 119.50 per barrel on Monday, while the US crude oil benchmark West Texas Intermediate (WTI) rose nearly 30.04 per cent to USD 118.21 from Friday’s close of USD 90.90. The sharp surge in prices of crude oil reflects growing fears of potential disruptions to energy supplies and shipping routes amid the escalating conflict in the Middle East.
The last time Brent and US crude futures traded near the current level was in 2022, after Russia invaded Ukraine.
Pakistan Approaches IMF for Relief
Pakistan has approached the International Monetary Fund (IMF) for relief on petroleum levies in response to rising oil prices, Petroleum Minister Ali Pervez Malik confirmed.
On Sunday, Aurangzeb highlighted the increasing economic pressure caused by the ongoing conflict. He said Pakistan’s monthly oil import bill could rise by USD 600 million if the crisis continues.
The government is also preparing emergency plans to mitigate the financial impact of rising crude prices. Malik urged fuel-saving measures to help protect Islamabad’s foreign exchange reserves.
Petrol and Diesel Prices Increased by Rs 55 Per Litre
Ali Pervez Malik stated that three petroleum shipments are expected to arrive on Monday, but warned that disruptions to LNG supplies remain a concern. He added that discussions are underway with Oman, Saudi Arabia, and the UAE to explore alternative routes beyond the Strait of Hormuz.
Amid rising tensions in West Asia, the Pakistani government increased petrol and diesel prices by Rs 55 (Pakistani rupee or PKR) per litre on March 7. This increase in fuel prices is expected to place additional pressure on the country’s economy.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
