The government has announced a sharp increase in petroleum prices, pushing petrol to Rs458.40 per litre and high-speed diesel (HSD) to Rs520.35 per litre, marking one of the steepest hikes in recent years.
The new rates were confirmed by Petroleum Minister Ali Pervaiz Malik, who said the revised prices would take effect immediately following the announcement.
Record Increase in Fuel Prices
The latest revision represents a massive jump in fuel costs:
- Petrol increased by approximately Rs137 per litre
- Diesel surged by around Rs184 per litre
This brings both fuels to historic highs, significantly above previous levels earlier in March.
Global Oil Crisis Driving Prices
Officials linked the increase to rising international oil prices, driven by the ongoing conflict in the Middle East.
Global crude markets have seen sharp spikes, with supply disruptions and security risks affecting key shipping routes such as the Strait of Hormuz.
Pakistan, which relies heavily on imported oil, has limited ability to absorb these shocks, forcing authorities to pass the costs on to consumers.
Subsidies Shifted to Targeted Relief
Finance Minister Muhammad Aurangzeb announced that the government will move away from blanket subsidies and instead introduce targeted relief measures.
Under the new plan:
- Motorcyclists will receive Rs100 per litre subsidy
- Relief will apply to up to 20 litres per month
- The programme will run for a limited period
Officials said the government can no longer sustain broad subsidies due to fiscal constraints.
Second Major Hike in Weeks
This is the second significant increase within a month, following an earlier rise of Rs55 per litre in early March.
Despite attempts to delay further hikes, continued volatility in global oil markets has forced repeated adjustments.
The cumulative increase over recent weeks has added significant pressure on consumers and businesses alike.
Economic Impact Expected
The sharp rise in fuel prices is expected to:
- Increase transportation costs
- Push up prices of goods and services
- Add further pressure on inflation
Analysts warn that the impact will be widespread, especially for lower-income households already facing rising living costs.
Rising Pressure on the Economy
With global energy markets remaining unstable, further price fluctuations cannot be ruled out.
Pakistan’s dependence on imported fuel means domestic prices will continue to track international trends, leaving little room for long-term stability without structural reforms.