Amid the global fuel crisis triggered by Iran's closure of the Strait of Hormuz, Pakistan has decided to impose a 200% hike on high-octane fuel per litre, ARY News has reported. The price has gone from Pakistani Rupees (PKR) 100 to PKR 300 after the hike.
The decision comes days after the country announced some austerity measures, including online classes and work from home, to minimise the effects of the fuel crisis. The government in Pakistan had also increased petrol and diesel prices by PKR 55 on March 6.
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ARY News reported on Monday that Prime Minister Shahbaz Sharif has approved this significant increase in the levy on high-octane fuel. The decision was taken in a high-level meeting chaired by the Prime Minister, as he reviewed matters related to fuel pricing and economic reliefs.
This fuel is used by luxury cars, and the hike is not expected to impact public transport fares and/or air travel, ARY has reported, adding that the meeting was attended by many senior ministers in Sharif's cabinet. Iran has put curbs on the movement of vessels through the Strait of Hormuz, a maritime choke point, responsible for the transportation of more than 20% of the world's crude oil.
US President Donald Trump has given Iran an ultimatum on the Strait's opening, failing which the United States of America "will hit and obliterate their various power plants, starting with the biggest first."
Responding to his threats, Iran has said it will "completely close" the Strait of Hormuz if their power plants are targeted.
The situation has sent oil prices skyrocketing. Many countries, including Sri Lanka, Bangladesh, Vietnam, Thailand, and others, have already announced a hike in fuel prices in their countries, along with the austerity measures.
India has so far endured the crisis, and there has not been a hike in the prices of fuel here.
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