Pakistan has announced a steep increase in fuel prices, marking the second major revision within a month, as global crude oil rates surge amid escalating tensions in the Middle East. The move is expected to intensify economic pressures on citizens already grappling with rising inflation.
The latest revision pushes diesel prices up by 54.9% to 520.35 Pakistani rupees per litre, while petrol has jumped 42.7% to 458.40 rupees per litre. Kerosene prices have also risen significantly, increasing by Rs 34.08 per litre to reach 457.80 rupees. The new rates will come into effect from Friday, as per reports.
Govt Cites Global Oil Shock
Announcing the decision, Petroleum Minister Ali Pervaiz Malik said the price hike was unavoidable due to spiraling international oil costs. Speaking alongside Finance Minister Muhammad Aurangzeb, he pointed to the intensifying geopolitical crisis as a key driver, as per India Today.
Malik stated during the televised conference that raising prices had been inevitable because international market rates had spiraled out of control after the US–Iran war.
The surge follows a previous increase of around 20% just last month, reflecting the sustained upward pressure on energy markets.
Economic Strain Deepens For Citizens
The sharp hike is likely to exacerbate inflation in Pakistan, where fuel costs directly impact transportation, food prices, and overall living expenses. With diesel prices crossing the 500-rupee mark, industries and households alike are expected to feel the strain.
Pakistan’s heavy reliance on imported oil—primarily sourced from Saudi Arabia and the United Arab Emirates via the critical Strait of Hormuz—makes it particularly vulnerable to global supply disruptions. Ongoing conflict in the region has disrupted shipping routes, pushing crude prices sharply higher.
Limited Relief As Subsidies Scaled Back
In response to the growing burden, Aurangzeb announced targeted relief measures for the agricultural sector, which contributes nearly 24% to the country’s GDP, as per reports. A one-time subsidy of 1,500 rupees per acre will be provided to small farmers to offset rising fuel costs.
However, the government signaled its inability to sustain broad-based subsidies. Malik noted that 129 billion rupees had already been spent on relief over the past three weeks but warned against continuing such measures.
Global Oil Markets Remain Volatile
The fuel price hike comes amid heightened volatility in global energy markets. Crude prices surged sharply on Thursday, with US oil rising over 11% and Brent crude climbing more than 7%, following an escalation in military operations announced by Donald Trump.
