Jet fuel falls Rs23 to Rs471 per litre after record spike, diesel also slashed by over Rs32

The government has reduced jet fuel prices by Rs23 per litre, bringing the new rate down to Rs471.01 per litre after last month’s record surge that significantly strained airline operations and pushed ticket prices to unusually high levels.

The latest revision was implemented through a notification issued by Pakistan State Oil, which also set the price of kerosene oil at Rs428.81 per litre. Officials said the adjustment reflects easing geopolitical tensions in the Middle East, along with changes in international oil prices and exchange rate movements.

The reduction follows a period of intense volatility in aviation fuel markets. Jet fuel prices had climbed to an all-time high of Rs494.71 per litre last month after multiple increases within weeks, driven by supply disruptions linked to the US–Iran conflict. Since the start of March, aviation fuel costs had risen cumulatively by Rs288 per litre.

The sharp escalation in fuel prices translated directly into higher operating costs for airlines, forcing carriers to raise fares across both domestic and international routes to maintain margins.

During the peak of the price surge, one-way domestic tickets on key routes between Karachi, Lahore and Islamabad climbed to around Rs40,000, while last-minute “chance seat” fares exceeded Rs50,000 due to capacity constraints and elevated fuel expenses.

International travel costs also rose significantly over the same period. Economy class fares to destinations in the Middle East, Europe and North America increased to between Rs300,000 and Rs700,000, reflecting the aviation sector’s heavy reliance on fuel pricing trends.

In a separate move aimed at easing broader transport costs, the government a day earlier approved a substantial reduction in the price of high-speed diesel. The rate was cut by up to Rs32.12 per litre, lowering the official price from Rs385.54 to Rs353.43 per litre following approval from Prime Minister Shehbaz Sharif.

Officials indicated that the recent downward revisions in fuel prices signal a partial correction after weeks of sharp increases, though the sector remains vulnerable to renewed volatility in global energy markets.