Petroleum Problems Hit South Asia Due To Middle East War Disruptions

By Shakir Husain

NEW DELHI, March 7 (Bernama) -- Consumers across South Asia are being hit by rising petroleum prices as the United States (US)–Israel war on Iran fuels concerns over global fuel supply disruptions.

The Pakistan government has hiked petrol and diesel prices by 55 rupees per litre, effective Saturday.

Petroleum Minister Ali Pervaiz Malik announced at a press conference that the new petrol price stands at 321.17 rupees (US$1.15) per litre, while diesel now costs 335.86 rupees per litre.

Long queues were reported at fuel stations in Pakistan on Friday before the new prices took effect.

The ongoing conflict in the Middle East has led to a spike in global crude oil prices and caused supply route uncertainties, requiring Pakistan to constantly monitor energy stocks, procurement options, and price trends, according to a Finance Ministry statement.

It noted that global petrol prices have increased from US$78 per barrel on March 1 to US$106.8 per barrel.

"In light of these developments and to ensure the smooth functioning of supply chains and economic activity, the government has decided to increase the prices of petrol and diesel by 55 rupees per litre, effective from midnight," the statement said.

In Bangladesh, panic buying was reported as the state-run energy company began rationing fuel.

Bangladesh Petroleum Corporation (BPC) said it has adopted the measure to ensure proper distribution of fuel oil during the crisis period.

The new daily limits are two litres for motorcycles, 10 litres for private cars, 20 to 25 litres for light vehicles, 70 to 80 litres for local buses, and 200 to 220 litres for long route buses and trucks, local media reported.

In India, the price of a 14.2-kilogramme liquefied petroleum gas (LPG) cylinder for household use went up by 60 rupees to 913 rupees (US$9.95), local media reported on Friday night.

Indian Petroleum Minister Hardeep Singh Puri said earlier that India will have uninterrupted energy imports despite geopolitical challenges.

"Our priority is to ensure the availability of affordable and sustainable fuel for our citizens, and we are doing it comfortably. There is no shortage of energy in India and there is no cause of worry for our energy consumers," he said on X.

The US government has given India a 30-day sanctions waiver, which Treasury Secretary Scott Bessent called a "deliberate short-term measure," to let Indian companies buy Russian oil stranded at sea at present.

Energy tanker traffic has dropped dramatically in the Strait of Hormuz, the vital route on Iran's southern border through which a huge amount of Middle Eastern oil and gas reaches world markets.

Iran has not blocked the Strait of Hormuz yet and has "no intention to do that until further notice," Iranian Deputy Minister of Foreign Affairs Saeed Khatibzadeh said in New Delhi on Friday.

"If we close it, we are going to announce it," he said.

The Iran versus US-Israel conflict is affecting oil and gas production in Iran as well as the neighbouring Arab countries.

Qatar, a major liquefied natural gas (LNG) producer, on Wednesday declared force majeure on gas exports due to the conflict in which Iran has responded to the US-Israeli attacks by hitting the Zionist regime and American military bases in the region.

Gulf Arab energy producers will shut down exports within weeks if the conflict continues, according to Qatari Energy Minister Saad Al Kaabi.

"Everybody who has not called for force majeure we expect will do so in the next few days... All exporters in the Gulf region will have to call force majeure," he told the Financial Times in an interview published on Friday.

-- BERNAMA