Pakistan's monthly oil import bill could skyrocket to $600 million, says Finance Minister

According to Dawn, Finance Minister Muhammad Aurangzeb made the remarks during a briefing on Sunday. Present in attendance were Pakistan's Petroleum Minister Ali Pervaiz Malik and Sindh Chief Minister Murad Ali Shah.

The Pakistani news outlet said that the Finance Minister Aurangzeb told the meeting that Pakistan's monthly oil import bill could increase to $600 million in the backdrop of the conflict in West Asia. He also mentioned that the government is preparing alternative plans to deal with the financial impact of rising oil prices. Dawn reported that crude prices could rise to USD 120 a barrel if the conflict escalates further.

As Pakistan continues to reel under economic stress, Pakistan's Petroleum Minister Ali Pervaiz Malik called for fuel-saving measures so that Islamabad's existing reserves last longer and added that the country would request the International Monetary Fund for relief in the petroleum levy.

Malik said that while three petroleum shipments are expected to reach the country on Monday, LNG supply disruptions are also anticipated. He further mentioned that diplomatic engagements are ongoing with Oman, Saudi Arabia and the UAE, with efforts underway for alternate fuel supply routes apart from the Strait of Hormuz.

This comes amid the backdrop of Pakistan announcing a massive hike in fuel prices, with petrol and high-speed diesel rates jumping by PKR 55 per litre--an increase of approximately 20%.

As of March 7, 2026, the new rates have pushed petrol to PKR 321.17 and high-speed diesel to PKR 335.86 per litre, placing an immense burden on an already struggling economy amid the escalating crisis in West Asia.

The announcement has sparked widespread anxiety across the country, where residents are already battling high living costs during the month of Ramadan. Commuters and workers have expressed despair over the rapid cost-of-living increase.

Petrol costs have surged, making daily expenses harder to manage, and experts warn that this could push inflation up significantly. With petrol now reaching Pakistani Rupees (PKR) 324 per litre, the rise is expected to affect the prices of many other goods, making life increasingly difficult for ordinary citizens trying to cope with the growing financial strain.

Experts warn that this fuel shock will likely trigger a second wave of inflation, as transport and logistics costs rise, inevitably driving up the price of food and essential goods.

Government officials, including Deputy Prime Minister Ishaq Dar, noted that Islamabad had "little choice" but to pass on the impact of skyrocketing international oil prices to consumers to stabilise national energy finances and adhere to requirements set during IMF consultations. (ANI)