Fuel prices surge to historic highs as the government links increase to global oil markets, while offering limited relief to motorcyclists.
ISLAMABAD: The government of Pakistan has sharply increased fuel prices, raising petrol to Rs458.41 per litre and high-speed diesel (HSD) to Rs520.35 per litre, citing a surge in international oil markets.
The announcement was made by Petroleum Minister Ali Pervaiz Malik alongside Finance Minister Muhammad Aurangzeb, who said the decision was unavoidable given global economic pressures.
The new rates reflect a steep jump from early March, when petrol stood at Rs321.17 and diesel at Rs335.86 per liter, an increase of Rs137.24 and Rs184.49 respectively. This marks one of the sharpest hikes in recent history.
To cushion the impact, Aurangzeb announced a targeted subsidy for motorcyclists, offering petrol at Rs100 less per litre for up to 20 litres.
Officials linked the increase to rising global crude prices, with Brent crude hovering above $109 per barrel and U.S. West Texas Intermediate exceeding $112. The surge has been attributed to escalating tensions in the Middle East, affecting global supply chains.
Prime Minister Shehbaz Sharif had previously resisted similar increases, rejecting proposals that would have significantly raised fuel costs. However, the latest revision underscores mounting external pressures.
Economists warn the hike will fuel inflation, increasing transport and food costs, while testing the government’s ability to balance economic stability with public relief.
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