New Delhi, March 10 (IANS). The sudden increase in petrol prices in Pakistan by about Rs 55 per liter has created a deep crisis. Long lines are forming at petrol pumps. People’s anger has increased throughout the country. However, the government of Pakistan is blaming the tension in the Middle East for this increase.
According to one report, the government in Pakistan has attributed this increase to global oil instability and rising tensions in the Middle East, but the recent crisis also highlights deep structural weaknesses in Pakistan’s energy system.
According to the Modern Diplomacy report, the main reason behind the pressure in global prices is the increasing tension between the US, Iran and Israel, which has increased the fear of instability in the Gulf of Hormuz.
The report said that about one-fifth of the world’s oil supply passes through this narrow sea route, making it extremely vulnerable to geopolitical disruptions.
The report also pointed out that even small changes in global prices can cause domestic fuel prices to rise sharply.
According to economic surveys of the Finance Ministry of Pakistan, petroleum imports constitute a major part of the country’s annual import bill.
“External factors alone cannot repeatedly account for the severity of the fuel crisis in Pakistan. The core issue is that the country has not been able to modernize its energy industry and diversify fuel sources,” the report said.
Studies by the Institute for Energy Economics and Financial Analysis show that Pakistan is heavily dependent on foreign energy sources despite its vast renewable energy potential.
Inflation is expected to rise further due to the recent petrol hike.
The report also said rising fuel prices drive up transportation costs, which in turn increases the prices of food and other essential commodities, hitting low-income families the most.
Despite repeated crises, policy responses have often been limited to short-term relief measures such as subsidies or temporary price freezes, rather than structural reforms.
Regional energy projects, such as the proposed Iran-Pakistan gas pipeline, remain stalled due to geopolitical and policy challenges.
The report also mentioned that energy analysts say Pakistan should adopt a comprehensive strategy to strengthen its energy security.
Expanding strategic petroleum reserves, modernizing domestic refineries and investing in renewable sources such as solar and wind can help reduce dependence on imported oil.
–IANS
AY/DKP
