The Pakistan jet fuel price hike has raised the cost of JP-1, used by commercial aircraft, intensifying pressure on airline operating costs amid the latest surge in petroleum prices.
According to the update, the government increased jet fuel by Rs154 per litre, taking the rate to a record Rs342.37 per litre from Rs188.93.
The jump is described as an 82% increase, and aviation experts expect airlines to pass on the higher costs through increased fares, with some estimating an airfare rise of at least Rs5,000.
Pakistan Jet Fuel Price Hike: Why Airfares May Rise
Jet fuel is a major cost component for airlines, and the sharp increase in JP-1 is expected to raise overall operating expenses.
Aviation experts cited in the report said airlines will likely increase ticket prices to cover the additional cost burden, especially on routes where margins are already tight.
Read: Pakistan Petrol Price Increased Rs55 as Government Sets New Rates for Petrol and Diesel
The fare impact may vary by airline and route, but the report suggests passengers should prepare for higher ticket prices.
Petrol and Diesel Prices Also Raised
The jet fuel hike follows the government’s decision to raise petrol and diesel prices, announced at a press conference in Islamabad.
Federal ministers said petrol and diesel prices were increased by Rs55 per litre. Under the revised rates, petrol is priced at Rs321.17 per litre, while diesel rises to Rs335.86 per litre from Rs275.70.
Deputy Prime Minister and Foreign Minister Ishaq Dar said the decision followed higher international oil prices amid widening regional conflict after an attack on Iran. The report adds that the situation expanded over the past 48 hours, with Turkey and Azerbaijan also becoming involved.
Petroleum Minister Ali Pervaiz Malik called the decision difficult, saying the government was trying to ensure energy needs were met during a challenging period.
The report also states that the IMF urged Pakistan to immediately increase petrol and diesel prices, citing sources. The demand was reportedly raised during virtual talks between Pakistani authorities and an IMF delegation.
