Jet fuel shock likely to send airline costs soaring in Pakistan

Jet fuel prices in Pakistan have surged by more than 80% following global market disruptions linked to tensions in the Middle East, raising concerns over higher airfares for passengers and increased transportation costs across the country.

Data quoted from Pakistan State Oil and other oil marketing companies shows the price of aviation turbine fuel (ATF) rising sharply after a government-approved increase.

The price of jet fuel climbed from PKR 188.93 per liter on March 1 to a record PKR 342.37 per liter, an increase of PKR 154 per liter. The jump represents roughly an 82% rise, with some market comparisons placing the increase close to 87%.

Airline representatives say the surge in fuel costs could significantly affect ticket prices for both domestic and international travel.

Industry officials warn that passengers in Pakistan may see airfares increase by PKR 7,500 to PKR 12,500 per ticket as airlines attempt to offset rising operational expenses.

The increase is partly linked to instability affecting energy supplies from the Persian Gulf, where a large share of the world’s high-quality jet fuel is produced and exported.

Unlike petrol, which is produced globally in large quantities, including in the United States through shale production, jet fuel supply is more concentrated in the Gulf region. Disruptions there have therefore had a disproportionate effect on aviation fuel prices.

Airlines operating to and from Pakistan are also facing higher costs due to rerouting and longer flight paths associated with regional instability.

The impact is not limited to air travel. Rail fares across Pakistan have also increased, with passenger and freight train ticket prices rising by up to 20%, according to transport officials.

The adjustments come as Pakistan faces broader economic pressures and fluctuating global energy prices. Higher transportation costs are expected to affect commuters and the logistics sector, as both air and rail travel remain essential for passenger movement and cargo distribution across the country.