Pakistan: Air fares likely to increase after government raises jet fuel prices
Islamabad, July 12
Airfares in Pakistan are likely to increase after the government raised the price of jet fuel by PKR 13.23 per litre, following a recent hike in petrol prices, ARY News reported.
According to an official notification issued by the Pakistani government, the price of jet fuel has been increased by PKR 13.23 per litre, taking the new rate to PKR 251.02 per litre, ARY News reported.
Aviation experts said the increase in jet fuel prices is expected to raise operating costs for both the national carrier, Pakistan International Airlines (PIA), and private airlines.
They added that the higher operational expenses are likely to be passed on to passengers in the form of increased airfares.
This comes after the petrol and diesel prices in Pakistan were likely to witness a rise due to a recent surge in crude oil rates in global market.
The price of petrol is expected to increase by Rs 13, whereas the rates of high-speed diesel can be hiked by Rs 14, ARY News reported, citing sources.
On June 28, the Pakistani government increased the petroleum levy on petrol and high-speed diesel (HSD) while leaving retail fuel prices unchanged for another week, despite a decline in international oil prices, The Express Tribune reported.
According to The Express Tribune, citing figures released by Pakistan's Petroleum Division, the petroleum levy on high-speed diesel (HSD) has been raised by PKR 6.57 per litre to PKR 79.54 per litre, while the levy on petrol has been increased by 39 paisa per litre to PKR 66.64 per litre.
The petroleum levy on kerosene oil remained unchanged at PKR 20.36 per litre. The revision came after the government decided not to pass on the benefit of lower global oil prices to consumers, opting instead to maintain petrol and diesel prices at existing levels for the coming week.
However, the Pakistani government has reduced the price of kerosene oil by PKR 6.85 per litre. According to a notification issued by Pakistan's Oil and Gas Regulatory Authority (OGRA), the new price of kerosene has been fixed at PKR 227.05 per litre, down from PKR 233.90 per litre, as reported by The Express Tribune.
Officials in the country's Petroleum Division said the increase in the petroleum levy applies only to petrol and high-speed diesel, while the levy on kerosene has not been revised.
The latest changes mean consumers will continue paying the same retail prices for petrol and diesel, even as the government's revenue from the petroleum levy on the two fuels has increased.
— ANI
Reader Comments
Why are we even discussing Pakistan's fuel prices? Our own economy has enough problems. But I can't help feeling a little concerned—our inflation is also through the roof, and we're not far behind in passing on global crude hikes to citizens. At least Pakistan's keeping kerosene cheaper for the poor; India should take note. 🤔
Interesting how Pakistan's government is using the petroleum levy to boost revenue without making it look obvious. They kept petrol prices unchanged but raised the levy—so technically, no price rise but more tax. That's some next-level economics, but the common man still suffers. PIA is already struggling; this will only make it worse. ✈️😬
It's sad to see our neighbor's aviation sector struggle like this. PIA has been in trouble for years, and now higher fuel costs will make air travel even more unaffordable for ordinary Pakistanis. Meanwhile, I'm glad India's domestic airlines are still competitive, but we should learn from their mistakes—don't let fuel taxes cripple the sector.
Pakistan and India—both struggling with fuel price volatility, but at least India has a large domestic market to cushion the blow. Pakistan's economy is too small to absorb these shocks. The fact that they reduced kerosene price by PKR 6.85 is a small mercy. Hope they can stabilize their economy soon. Unfortunately, it's our neighbor's pain we feel too. 😕
Aviation experts say fares will rise—surprise, surprise! Jet fuel is a major cost for airlines, and any hike hits
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.