Karachi: March 26, 2026: In an interview, Arif Habib stated that the government has imposed an exorbitant increase in the price of aviation fuel. He said that jet fuel prices have been raised by as much as 150 percent. According to him, if the government does not withdraw this increase, it will become difficult to operate PIA, and there is a fear that the airline may have to be shut down, as running it at such fuel costs would be impossible.
Following the attacks by the United States and Israel on Iran, global fuel prices have surged sharply. The government had earlier increased petroleum product prices by Rs55 per liter. However, since then, while petrol prices have not been raised further, jet fuel prices have seen a massive increase of 150 percent. The price per liter of jet fuel has been increased from Rs84 to Rs472.
Due to the rise in jet fuel prices, air travel tickets have already become very expensive. A one-way fare from Karachi to Islamabad has exceeded Rs75,000. As air travel becomes costlier, people are now preferring more affordable modes of transportation such as railways and intercity and interprovincial bus services.
The consortium led by Arif Habib acquired PIA last year for Rs135 billion. Subsequently, Fauji Fertilizer Company also joined the consortium. The consortium has established a company named PIA Equity Limited. It is now required to complete the purchase of an additional 25 percent shares from the government by the end of April, which would generate approximately Rs40 billion in further revenue for the government. However, due to the overall political tensions in the region, disruptions in air travel, and rising fuel costs, operating PIA has now become increasingly challenging.
