A Lufthansa Airbus 380 refuels at Frankfurt airport July 12, 2013. PHOTO: REUTERS
The government on Saturday cut the price of jet fuel by Rs 23 per liter after easing tensions in the Middle East.
A day earlier, the government had cut the price of high-speed diesel (HSD) by up to Rs 32.12 per litre. Prime Minister Shehbaz Sharif approved the reduction in HSD price on Friday from Rs 385.54 to Rs 353.43 per litre.
According to a notification issued by Pakistan State Oil (PSO), the new rate for jet fuel was Rs471.01 per liter while kerosene oil was priced at Rs428.81 per liter.
The revision reflects changes in global oil prices and exchange rate fluctuations. The adjustment is expected to provide some relief to the aviation sector, which has been facing high operating costs due to increased fuel prices.
Read: Jet fuel prices rose for the fifth time in 28 days
The latest reduction came after a sharp rise in jet fuel prices last month, with prices rising to a record high of Rs 476.97 per liter after several hikes within weeks. Authorities had cited the global oil crisis triggered by the US-Iran conflict, with prices rising by Rs 288 per liter since early March.
The increase in jet fuel costs significantly increased operating costs for airlines, leading to a sharp increase in airfares. One-way domestic tickets on key routes such as Karachi, Lahore and Islamabad rose to as high as Rs.40,000, while “random seat” fares crossed Rs.50,000.
International travel was also affected, with economy class fares to destinations including the Middle East, Europe and North America rising to between Rs300,000 and Rs700,000, reflecting the wider impact of fuel price volatility on the aviation sector.
