KARACHI: Pakistan recorded the sixth increase in jet fuel prices in a month, with rates rising by Rs.40 per litre to Rs.517.17, officials said — a cumulative surge of Rs.329.17 since March 1, when jet fuel was priced at Rs.188 per litre.
The latest adjustment follows a series of steep hikes that began in early March.
In the first week of the previous month jet fuel jumped from about Rs.188.93 to Rs.342.37 — a single-day increase of roughly Rs.154 — and subsequent rises continued through March as global oil markets reacted to escalating tensions in West Asia. A fifth increase late in March added Rs5 in one day, taking the price to Rs.476.97 before Thursday’s Rs.40 uptick.
Officials and market analysts attribute the sharp increases primarily to geopolitical turmoil centred on the Iran–Israel–US flashpoint, which has pushed crude oil prices higher, disrupted shipping and refining routes and stoked fears over supply through chokepoints such as the Strait of Hormuz.
Pakistan State Oil (PSO) and government spokesmen have repeatedly linked domestic fuel price adjustments directly to the volatility of international energy markets.
The jet fuel hikes come amid broad-based increases in pump prices announced around April 2–3, when petrol and diesel were also raised sharply because of the same regional tensions. In the latest round, petrol climbed to roughly Rs458.40 per litre and diesel to about Rs520.35 per litre.
Aviation sector under strain
Airlines have been among the hardest hit by the spike in jet fuel costs. Industry figures point out that jet fuel typically accounts for some 40–45 per cent of an airline’s operating expenses, and the rapid escalation in fuel prices has translated into steep fare increases and added operational pressure.
Pakistan International Airlines (PIA) and other carriers reported jet-fuel cost surges of more than 150 per cent in recent weeks — with jet fuel costs rising from about Rs.180 per litre in early March to above Rs.400 by late March. Airlines have passed part of the burden to travellers through fuel surcharges and base-fare adjustments. Reports from late March showed last‑minute and standby one‑way fares on key domestic routes at times breaching Rs.40,000–50,000; international fares have also been affected.
It may be recalled here that PIA’s newly appointed consortium chairman, Arif Habib, warned that sustained high jet-fuel prices could threaten the viability of local carriers and leave them at a competitive disadvantage against foreign rivals. “If international energy prices remain at these levels, carriers will face existential challenges unless mitigating steps are taken,” people close to the airline quoted him as saying.
Meanwhile, aviation executives and some energy economists have urged government intervention to blunt the impact on the sector, with suggestions that include temporary subsidies, targeted relief for domestic carriers, or the adoption of fuel‑hedging strategies to stabilise costs. Industry experts cautioned, however, that subsidies would carry fiscal costs and hedging requires sufficient foreign‑exchange buffers and technical capacity.
On its part, the government has so far defended the pricing adjustments as necessary reflections of international market realities and PSO’s import and refining costs. Authorities say any longer‑term relief will depend on movements in global crude and refined product markets, and on fiscal room to provide support without worsening macroeconomic pressures.
