The federal government has announced a reduction in jet fuel prices, providing financial relief to airlines by lowering one of their highest operating costs.
The latest revision has reduced the price of jet fuel by Rs7.15 per litre, bringing the new rate down to Rs231.72 per litre.
The price cut is expected to reduce fuel expenses for both domestic and international airlines operating in Pakistan. The reduction could ease financial pressure on carriers and improve their operating margins. Previously, jet fuel was priced at approximately Rs238.87 per litre. However, airlines will now purchase aviation fuel at the lower rate. Although it is still not confirmed whether airlines will immediately reduce ticket prices for passengers.
The jet fuel prices had increased considerably in recent months due to the conflict in the Middle East, causing instability in global oil markets. Rising international crude oil prices pushed aviation fuel costs higher, increasing expenses for airlines and affecting the aviation sector.
Lower aviation fuel costs are expected to benefit airlines by reducing expenditure on aircraft operations. The move may strengthen the financial position of airlines, mainly those operating large domestic and international fleets.
The decision comes as the government continue to monitor changes in international energy markets following recent geopolitical tensions. Pakistan’s aviation industry has faced higher fuel costs during periods of oil price volatility around the world.
Despite the relief, jet fuel prices remain considerably higher than they were before the Middle East conflict began.
On the other hand, the federal government set to introduce a new mechanism to ensure transparency in petroleum price determination.
Federal Minister for Petroleum Ali Pervaiz Malik said a high-level committee, formed on the directives of Prime Minister Shehbaz Sharif, is working on a transparent pricing system that is expected to bring positive news for the public in the coming days.
Read more: Govt to launch new system for transparent petrol prices
