Pakistan raises retail fuel prices by about 20% due to Middle East tension

(Reuters) - Pakistan on Friday raised consumer prices for diesel and petrol about 20%, citing ​higher oil prices driven by conflict in ‌Iran.

In a televised video message, Petroleum Minister Ali Pervaiz Malik announced a historically large 55-rupee ($0.20 a liter) increase to ​321.17 rupees for diesel and 335.86 rupees ​for petrol.

“We have taken this decision under compulsion ⁠because of a sharp surge in petroleum prices ​globally,” the minister said.

The decision is likely to ​ripple through to higher inflation and hit Pakistan's impoverished population.

Before the announcement, fuel stations in major cities like Lahore and ​Karachi had long lines of people waiting to ​fill up.

Queuing at a Lahore station, business owner Imran Hussain ‌said ⁠he wanted to be prepared in case of a shortage. “I have been waiting for my turn for the last 70 minutes,” he said.

Prime Minister Shehbaz ​Sharif on ​Friday warned ⁠against fuel hoarding and said hoarders would be punished.

“We have sufficient petrol reserves. ​But we are planning to stretch them ​because ⁠we don’t know when the Middle East crises will end,” said the minister.

Pakistan imports oil mainly from ⁠Saudi ​Arabia and the UAE through ​the Strait of Hormuz.

The government will reassess prices weekly, the oil ​minister said.