A Lufthansa Airbus 380 refueling at Frankfurt Airport on July 12, 2013. PHOTO: REUTERS
The government on Saturday reduced the price of jet fuel by Rs 23 per liter following the easing of tensions in the Middle East.
A day earlier, the government had reduced the price of high-speed diesel (HSD) by up to Rs 32.12 per litre. Prime Minister Shehbaz Sharif on Friday approved the reduction in the price of HSD from Rs385.54 to Rs353.43 per litre.
According to a notification issued by Pakistan State Oil (PSO), the new rate for jet fuel was Rs 471.01 per liter, while the price of kerosene was Rs 428.81 per litre.
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 is facing high operational costs due to rising fuel prices.
Read: Jet fuel price increased for the fifth time in 28 days
The latest reduction came after a sharp rise in jet fuel prices last month, when rates soared to a record Rs 476.97 per liter after multiple increases in a matter of weeks. The authorities had cited the global oil crisis triggered by the American-Iranian conflict, with a price increase of 288 rupees per liter since the beginning of March.
Soaring aviation fuel costs have significantly increased airline operational expenses, leading to a sharp increase in airfares. One-way tickets on key routes such as Karachi, Lahore and Islamabad have soared to as high as 40,000 rupees, while “lucky seat” fares have topped 50,000 rupees.
International travel was also affected, with economy class fares to destinations such as the Middle East, Europe and North America being high between Rs 300,000 and Rs 700,000, reflecting the wider impact of fuel price volatility on the aviation sector.
