Petrol prices up in Pakistan as Mideast tensions escalate

ISLAMABAD: Petrol prices have been hiked up by Rs4.80 per litre in Pakistan for the next 15 days amid rising global oil rates, driven by the ongoing Israel-Iran conflict.

According to a Finance Division notification, the new petrol price stands at Rs262.59 per litre, up from Rs257.79. High-speed diesel has also been increased by Rs7.95 per litre, bringing it to Rs258.43 from the previous Rs250.48.

The new prices are effective from today (Monday).

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Just a fortnight ago, the Pakistan government had raised petrol prices by RS 1, as global markets remained largely steady. This time, however, prices are reacting to growing fears of a prolonged Middle East conflict.

Oil markets saw fresh gains as Israel and Iran exchanged missile attacks for a fourth straight day. Both sides have warned of more strikes, sparking concerns over long-term economic fallout.

Analysts fear the latest surge in oil prices could reignite global inflation and undermine the progress made by governments and central banks.

“The knock-on impact of higher energy prices is that they will slow growth and cause headline inflation to rise,” said Tony Sycamore, a market analyst at IG.

Economists say fragile economies like Pakistan could face the worst of the ripple effect.