Consumers across South Asia grapple with soaring petroleum prices and rationing as Middle East conflict disrupts global supply, impacting Pakistan, Bangladesh, and India.

NEW DELHI: Rising petroleum prices are hitting consumers across South Asia. The United States and Israel’s war on Iran has fuelled concerns over global fuel supply disruptions.

Pakistan’s government has hiked petrol and diesel prices by 55 rupees per litre. The new prices took effect on Saturday.

Petroleum Minister Ali Pervaiz Malik announced the new petrol price stands at 321.17 rupees per litre. Diesel now costs 335.86 rupees per litre.

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

A Finance Ministry statement cited the Middle East conflict for spiking global crude prices. It said the situation caused supply route uncertainties.

The statement noted global petrol prices rose from US$78 per barrel on March 1 to US$106.8 per barrel. It said Pakistan must constantly monitor energy stocks and procurement.

“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,” it said. The increase is 55 rupees per litre effective from midnight.

In Bangladesh, panic buying was reported. This followed the state-run energy company beginning to ration fuel.

The Bangladesh Petroleum Corporation said it adopted the measure to ensure proper distribution. It aims to manage distribution during the crisis period.

New daily limits are two litres for motorcycles and 10 litres for private cars. Light vehicles are limited to 20-25 litres, while local buses get 70-80 litres.

Long route buses and trucks have a limit of 200-220 litres. Local media reported these new rationing measures.

In India, the price of a 14.2-kilogramme LPG cylinder for household use went up by 60 rupees. It now costs 913 rupees, as reported by local media on Friday night.

Indian Petroleum Minister Hardeep Singh Puri said India will have uninterrupted energy imports. He made this statement despite geopolitical challenges earlier.

“Our priority is to ensure the availability of affordable and sustainable fuel for our citizens, and we are doing it comfortably,” he said on X. He added there is no shortage or cause for worry in India.

The US government has given India a 30-day sanctions waiver. Treasury Secretary Scott Bessent called it a “deliberate short-term measure.”

The waiver lets Indian companies buy Russian oil currently stranded at sea. This was confirmed in reports.

Energy tanker traffic has dropped dramatically in the Strait of Hormuz. This vital route on Iran’s southern border channels a huge amount of Middle Eastern oil and gas.

Iranian Deputy Minister of Foreign Affairs Saeed Khatibzadeh said Iran has not blocked the strait. He stated Iran has “no intention to do that until further notice.”

“If we close it, we are going to announce it,” he said in New Delhi on Friday. His comments addressed the strategic waterway.

The conflict is affecting oil and gas production in Iran and neighbouring Arab countries. Qatar, a major LNG producer, declared force majeure on gas exports on Wednesday.

Iran has responded to US-Israeli attacks by hitting Israeli and American military bases. This escalation prompted Qatar’s declaration.

Qatari Energy Minister Saad Al Kaabi said Gulf Arab energy producers will shut down exports within weeks. This is if the conflict continues.

“Everybody who has not called for force majeure we expect will do so in the next few days,” he told the Financial Times. “All exporters in the Gulf region will have to call force majeure.”

 The Sun Malaysia