No respite for fuel consumers in Pakistan
Supply routes disrupted as global prices, freight and insurance costs surge
Pakistani consumers anticipate ongoing struggles with fuel costs as tensions escalate in the Middle East and oil supply disruptions persist. The Strait of Hormuz has been closed, and alternative routes have been disrupted by Houthi attacks, hampering Saudi Arabia's oil exports. Pakistan's government attempted to secure oil shipments but faced setbacks.
Despite increased global oil prices, Pakistan has managed to keep its petroleum supply chain running. However, securing November's oil cargoes is projected to be more difficult and expensive. The Pakistan Petroleum Division claims to hold stocks for over 20 days, exceeding the minimum requirement. Domestic fuel prices have risen by 68% for petrol and 57% for diesel in two months.
The cost of delivering crude to Karachi has surged due to increased freight and war-risk insurance premiums. Despite these challenges, Pakistani consumers currently pay less for diesel than those in the United States.
Written by urgent.news from The Express Tribune - Pakistan's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
