As tensions in Hormuz affect the oil supply, Pakistan raises the price of high-octane fuel by 200%.

As tensions in the Middle East and interruptions around the Strait of Hormuz continue to put pressure on the world’s oil supplies, Pakistan has drastically increased the price of high-octane fuel, increasing the levy to PKR 300 per litre from PKR 100.

Prime Minister Shehbaz Sharif approved the move on Sunday at a high-level meeting when the administration discussed more comprehensive economic relief measures as well as fuel prices. High-octane fuel, which is usually used in luxury cars, was the target of the sharp rise, which was PKR 200 per litre.

“This decision will save the government 9 billion rupees monthly, and in accordance with the Prime Minister’s directive, relief will be provided to the public from these savings. This decision will reduce the burden on the economy, as the wealthiest class of the country will bear the load,” Sharif said in an official statement.

According to Sharif, the action is not anticipated to have an impact on the cost of air travel or public transportation, providing some protection to the general populace in spite of the wider inflationary pressure.

Law Minister Azam Nazir Tarar, Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Petroleum Minister Ali Pervaiz Malik, and other high-ranking officials were among the senior members of the federal cabinet present at the meeting.  The most recent increase came after a previous revision on March 6, when the cost of gasoline and diesel increased by PKR 55 per litre amid a surge in global oil rates driven by the ongoing US-Israel conflict with Iran.

The updated tariffs were announced at the time by Petroleum Minister Ali Pervaiz Malik, who was accompanied by Finance Minister Aurangzeb and Deputy Prime Minister Ishaq Dar.

Following that increase, the price of gasoline increased from PKR 266.17 to PKR 321.17 per litre, while the price of diesel increased from PKR 280.86 to PKR 335.86 per litre.

The aviation industry has already experienced the knock-on impacts. In reaction to rising jet fuel prices, Pakistani airlines increased tariffs by March 10. On important routes like Karachi-Lahore and Karachi-Islamabad, domestic ticket rates increased by PKR 2,800 to PKR 5,000.

Fares for international travel increased much more sharply, ranging from PKR 10,000 to PKR 28,000. The cost of flights to locations in the Middle East and Central Asia increased by almost PKR 15,000.