Pakistan International Airlines (PIA) operations are at risk after the jet fuel price hike, according to Arif Habib, chairman of the Arif Habib Group.
Habib, the new owner of PIA, has said that the surge in fuel costs has put PIA at a significant disadvantage compared with international competitors.
“It won’t be viable to run the airline with current jet fuel prices,” Habib said, noting that domestic fuel prices have risen disproportionately compared with global trends.
Habib called on the government to intervene by rationalising refining margins to bring fuel prices in line with regional benchmarks, saying the current pricing structure poses an existential challenge to the airline’s turnaround.
“No business can remain healthy while operating at a consistent loss,” he said, adding that he plans to raise the issue with Prime Minister Shehbaz Sharif.
New price of jet fuel
It is pertinent to mention that the price of jet fuel has increased by Rs83 per litre, taking it to an unprecedented Rs471 per litre. This marks the latest surge in aviation fuel costs, making it one of the highest levels recorded in the country.
Since March 1, the price has increased by Rs283 per litre, when it stood at Rs188 per litre.
The latest revision is the fourth increase in jet fuel prices during March. This consistent upward trend highlights the growing impact of global oil price fluctuations on Pakistan’s aviation sector.
