Petrol hits Rs458 per litre, diesel soars to Rs520 in steep fuel hike

The government has implemented a major increase in fuel prices, raising petrol to Rs458.41 per litre and high-speed diesel (HSD) to Rs520.35 per litre. Petroleum Minister Ali Pervaiz Malik confirmed the new rates, which took effect immediately, citing global oil market pressures and regional supply disruptions.

Scale of the increase

This revision is among the largest in recent years. Petrol prices have surged by over Rs137 per litre, while diesel has jumped more than Rs184 per litre compared to previous rates. Kerosene prices were also adjusted upward, reflecting a broad correction across petroleum products.

Reason behind the hike

Officials attributed the hike to disruptions in global oil supply caused by ongoing conflicts in the Middle East. U.S. and Israeli strikes on Iran, followed by retaliatory actions, have affected crude shipments through the Strait of Hormuz, a critical route for Pakistan’s imported fuel.

With international oil prices surging, Pakistan has passed the additional costs onto domestic consumers, citing limited fiscal space to maintain previous rates.

Targeted relief measures

To cushion the impact, the government announced a subsidy for motorcyclists: Rs100 per litre, capped at 20 litres per month for a limited period. Officials emphasized the move reflects a shift from blanket subsidies toward more targeted relief amid budget constraints.

Implications for the economy

This fuel hike is likely to push transport costs higher, affecting logistics, agriculture, and the pricing of essential goods. Household budgets will face added strain, as petrol and diesel prices directly influence daily living costs.

The spike also underscores Pakistan’s exposure to global energy shocks. As long as Middle East tensions persist and oil supply routes remain volatile, fuel price volatility is expected to continue.