ISLAMABAD: Federal government has increased the prices of petrol and diesel by Rs55 per litre after a sharp rise in global oil prices triggered by escalating conflict in the Middle East, officials said on Thursday.

According to the notification issued by federal government, the price of petrol has been increased by Rs55 per litre, taking it to Rs321.17 per litre.

Similarly, the price of high-speed diesel has also been raised by Rs55 per litre, reaching Rs335.86 per litre.

Deputy Prime Minister Ishaq Dar said petroleum prices around the world had surged due to the ongoing war situation in the region following attacks on Iran.

“Petroleum product prices have increased by 50 to 70 per cent globally,” he said, adding that in many countries prices adjust automatically in response to international market trends.

Dar said a committee headed by Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik was continuously reviewing petroleum prices and monitoring the evolving situation.

He said Prime Minister Shehbaz Sharif had also chaired several meetings to assess the situation and later constituted a committee led by Dar, with the finance and petroleum ministers as members.

“Our effort is to ensure that the burden on the public remains as low as possible,” Dar said, noting that the situation remained volatile with no immediate stability in sight.

He added that Pakistan remained in contact with Middle Eastern and Gulf countries and that the prime minister had held multiple discussions with his counterparts, while Field Marshal Syed Asim Munir was also in contact with other countries regarding defence-related matters.

Finance Minister Aurangzeb said the government was closely monitoring the situation as petroleum prices were rising significantly on a daily basis in international markets.

He noted that Pakistan’s energy sector and overall economy were closely linked, adding that the country was currently in a relatively stable macroeconomic position.

Aurangzeb also said that under the prime minister’s instructions, he would meet chief ministers and chief secretaries of all four provinces within the next two days to discuss the latest developments and coordinate policy responses.

Petroleum Minister Ali Pervaiz Malik said Pakistan was facing extraordinary circumstances as the conflict in the region had spread widely.

He said the government had increased petroleum reserves in recent weeks and ensured the supply system remained stable.

Malik revealed that two ships carrying petroleum products were currently heading towards Saudi Arabia’s Yanbu port and Fujairah port to secure supplies for Pakistan.

He also said Saudi Aramco had assured Pakistan that it would dispatch a large vessel carrying petroleum products from Yanbu to support the country’s energy needs.

According to the minister, international oil prices had risen sharply in recent days. On March 1, petrol was priced at $78 per barrel while diesel stood at $88 per barrel in global markets.

However, by March 6, petrol had surged to $106.80 per barrel while diesel prices had climbed to around $150 per barrel.

“In view of these developments, the government has been compelled to take the difficult decision to increase petrol and diesel prices by Rs55 per litre,” Malik said, adding that prices would be reduced again once the situation improved.

He said the government would continue efforts to ensure uninterrupted fuel supply across the country while also taking strict action against hoarding and profiteering.