Pakistan’s fuel prices are under fresh pressure after Pakistan State Oil imported petroleum products at record-high premiums, driven by disruptions in global supply routes amid the Middle East conflict.
The crisis has impacted shipments through the Strait of Hormuz, a key oil transit route, pushing premiums from around $12 per barrel to over $34-$35 per barrel, the highest level ever recorded, reported Express Tribune.
In a letter to the Oil and Gas Regulatory Authority, PSO highlighted that a recent high-speed diesel cargo carried a premium of $35.612 per barrel, warning that similar costs are expected for upcoming shipments.
If these premiums are fully passed on, the ex-refinery diesel price could rise by around Rs. 122.76 per litre from the current Rs. 496.97 per litre, significantly increasing consumer prices.
PSO has urged regulators not to fully transfer these exceptional costs to consumers, suggesting that only a portion be reflected in prices while the rest be reimbursed through existing mechanisms. According to the company, if prices are calculated using pre-war premium levels, the increase could be limited to around Rs. 60 per litre, while using more recent benchmarks may result in a rise of about Rs. 40 per litre.
The company also proposed that the remaining cost gap be covered through the inland freight equalisation margin system to avoid excessive burden on consumers.
The situation is further complicated by delayed payments to oil marketing companies, although the government has recently released around Rs. 38 billion under the Price Differential Claims mechanism to ease liquidity pressures.
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