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Pakistan has announced a sharp increase in petrol and diesel prices for the second time in less than a month, amid the ongoing Middle East war that has severely impacted the global oil crisis.The recent rise is expected to exacerbate inflationary pressures and increase the economic burden on citizens who are already suffering from high costs.Petroleum Minister Ali Parvez Malik announced the revised fuel prices during a press conference broadcast on state television alongside Finance Minister Muhammad Aurangzeb.
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Diesel prices rose by 54.9 percent to 520.35 rupees per litre, while petrol prices increased by 42.7 percent to 458.40 rupees per litre, according to Reuters. The government also increased kerosene prices by Rs 34.08 per litre, to Rs 457.80 per litre. The new prices took effect immediately, making fuel significantly more expensive across the country.An “inevitable decision” amid global turmoilDefending the price hike, Malik said that the government had no choice but to transfer the burden of rising global oil prices to consumers. He stated that international markets have become highly volatile in the wake of the US-Iran war, which disrupted supply chains and pushed crude oil prices to rise sharply.
He described the decision as “inevitable” and said: “It was inevitable to raise prices due to global market prices getting out of control after the US-Iranian war.”
Why are fuel prices rising in Pakistan?
The sharp increase in fuel prices is closely linked to geopolitical tensions in the Middle East and Pakistan’s heavy dependence on imported oil. The ongoing conflict has disrupted supply routes, especially through the Strait of Hormuz, a vital corridor for global oil shipments. Pakistan depends largely on imports from countries such as Saudi Arabia and the United Arab Emirates, making it highly vulnerable to international price fluctuations. At the same time, global indices rose sharply, as oil markets witnessed significant fluctuations, leaving import-dependent economies like Pakistan with limited options.The government indicated that it was no longer able to continue large-scale fuel subsidies due to increasing financial pressures.
Malik said that about 129 billion rupees have already been spent over the past few weeks to protect consumers from rising prices, according to Dawn. With limited resources and no immediate end to the conflict in sight, the government decided to move away from blanket subsidies and instead focus on targeted assistance to the most vulnerable groups in society.He added: “Since resources are limited and there is no end to this war in sight, there was no way to continue comprehensive support.”
Relief measures for vulnerable groups
Finance Minister Muhammad Aurangzeb announced a set of targeted relief measures aimed at mitigating the impact on specific groups. This includes providing subsidies to motorcyclists, supporting small farmers, and providing financial assistance to the transportation sector to help stabilize prices and ensure the continued movement of goods and passengers. The government also plans to provide support to low-income travelers who use rail services.