Two major telecom companies in Pakistan want to increase the prices of mobile and internet packages. Yesterday, April 14, they submitted a formal request to the Pakistan Telecommunication Authority (PTA). They seek an immediate upward adjustment in mobile and internet tariffs.
A sharp rise in diesel prices heavily affects the telecom industry at large. Operators rely heavily on diesel-powered generators to keep telecom sites active. Furthermore, frequent power shortages and load shedding across the country force companies to use backup generators constantly. Consequently, operational expenses have increased significantly.
Ongoing geopolitical tensions involving Iran, the United States, and Israel triggered this fuel crisis. Concerns over the Strait of Hormuz disrupted global oil supply chains. Before this Middle East escalation, diesel in Pakistan cost Rs. 270 per litre. Today, it costs Rs. 385 per litre. Earlier in April, prices spiked as high as Rs. 520 per litre. Naturally, this massive increase already forced transporters, railways, and other sectors to revise their fares.
Telecom operators issued a clear warning to the PTA in their communication. They stated that escalating fuel costs severely strain their operations. Therefore, without a tariff revision, they cannot sustain reliable services. Uninterrupted connectivity will become increasingly difficult to ensure, particularly in remote and off-grid areas facing severe energy shortages.
Additionally, companies noted that any increase in electricity tariffs under the Fuel Price Adjustment (FPA) mechanism will add even more financial pressure on operations.
The companies strictly requested higher prices for mobile and internet packages to offset these rising fuel expenditures. Currently, the PTA is reviewing the official request. Depending entirely on the outcome of the regulatory assessment, telecom tariffs will likely increase by 10 to 15 percent.
