Pakistan has announced one of the steepest fuel price increases in its history, significantly raising the cost of petrol and high-speed diesel amid escalating Middle East tensions and surging global energy prices.
Federal Minister for Petroleum Ali Pervaiz Malik made the announcement on Thursday during a press conference in Islamabad, held jointly with Finance Minister Muhammad Aurangzeb.
Under the revised rates, petrol will now sell at Rs 458.40 per litre, reflecting an increase of Rs 137.23 per litre. High-speed diesel has been raised even more sharply to Rs 520.35 per litre, up by Rs 184.49 per litre.
Global conflict, rising oil prices cited
Explaining the decision, the petroleum minister said the surge in international oil prices, driven largely by the ongoing conflict in the Middle East, had left the government with limited options. He noted that disruptions in global supply chains and heightened geopolitical risk have pushed crude prices higher, directly impacting fuel import costs for Pakistan.
Officials said the government had attempted to delay the increase, but sustained pressure from global markets and fiscal constraints made the adjustment unavoidable.
Inflation and transport costs likely to rise
Economists warn that the sharp hike in petrol prices is likely to have widespread economic consequences. Diesel, in particular, plays a critical role in transportation, agriculture, power generation, and industrial activity. The increase is expected to push up freight charges, food prices, and electricity costs, adding to inflationary pressures already faced by households.
Petrol price increases are also expected to impact daily commuters and urban transport systems, further straining household budgets.
Government defends decision
Finance ministry officials acknowledged that the decision would be difficult for the public but said it was necessary to stabilize the economy, manage the current account, and meet external financial obligations. They stressed that keeping fuel prices artificially low was no longer sustainable given global energy trends and Pakistan’s limited fiscal space.
Immediate implementation
The revised fuel prices take effect immediately and apply nationwide. The government has not announced any targeted relief measures alongside the hike, though officials said further steps may be considered to cushion the most vulnerable segments of society.
