The government has defended the recent Rs55 per litre increase in petrol prices, telling the Senate Standing Committee on Finance that the decision was necessary to avoid a potential disruption in fuel supplies.

Petroleum Minister Ali Pervaiz Malik said the price adjustment was made after consultations within the government as international oil markets experienced sharp volatility and logistical challenges intensified amid regional tensions.

He told lawmakers that crude oil previously imported at around $70 per barrel could now cost close to $120 per barrel, significantly increasing Pakistan’s fuel import bill.

According to the minister, if domestic fuel prices had not been revised, oil marketing companies might have stopped importing petroleum products due to mounting costs, which could have triggered widespread shortages.

Malik added that oil shipments typically take about 20 days to reach Pakistan, making it critical for the government to maintain pricing policies that allow companies to continue imports without financial losses.

However, opposition members strongly criticised the move during the committee meeting. Senator Farooq H. Naek argued that the government could have opted to adjust petroleum levies instead of raising fuel prices, which would have generated revenue for the national treasury.

Lawmakers also warned that continued escalation in regional tensions and further increases in global oil prices could push petrol prices in Pakistan significantly higher.

Government officials said the situation in international markets is being closely monitored and that fuel prices will be reviewed again based on global developments.