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Petrol Price Hike in Pakistan has taken effect, with prices soaring amid an ongoing global fuel crisis triggered by the US-Israeli conflict with Iran. Petroleum Minister Ali Pervaiz Malik announced the new rates in a press conference on Thursday alongside Finance Minister Muhammad Aurangzeb.
Overview of Petrol Price Hike
The government has raised petrol prices to Rs458.4 per litre and high-speed diesel (HSD) to Rs520.35 per litre. Kerosene prices have also increased to Rs457.80 per litre. These hikes will be effective starting Friday and come after multiple recommendations were previously rejected by Prime Minister Shehbaz Sharif.
Detailed Price Breakup
The energy ministry clarified that petrol prices increased by Rs137.24 per litre, diesel by Rs184.49 per litre, and kerosene by Rs34.08 per litre. Earlier, the government had implemented an initial Rs55 per litre increase in March, alongside austerity measures aimed at stabilizing the economy amid rising international oil costs.
Government Subsidy Programs
Finance Minister Aurangzeb detailed a targeted subsidy program to support vulnerable groups. Two-wheelers will receive a Rs100 per litre subsidy capped at 20 litres per month for the next three months. Small farmers will get a one-time Rs1,500 per acre subsidy, while transport subsidies will benefit inter-city goods and passenger vehicles, with amounts ranging from Rs70,000 to Rs100,000 monthly.
These measures aim to stabilize fares and ensure essential food and services remain accessible to the public. Subsidies for train passengers and market operating hours will also be adjusted, with further details to be announced in consultation with provincial authorities.
Impact of Global Fuel Crisis
The recent surge in crude oil prices in Dubai and Oman markets, where Pakistan procures around 80% of its energy, has surpassed $250 per barrel. Minister Malik highlighted that the war in the Middle East has caused unprecedented energy market volatility, affecting Pakistan’s economy despite government efforts to protect citizens through fiscal measures and alternative energy arrangements.
Official Statements and Measures
Malik emphasized that the government’s decisions, though difficult, are responsible and focused on protecting the economy and the weaker segments of society. He acknowledged that wealthier nations are also struggling under similar circumstances. Prime Minister Shehbaz Sharif and military leadership were part of discussions to shift away from blanket subsidies, concentrating relief where it is most needed.
The government has spent Rs129 billion since March 1 to shield citizens from the brunt of rising global fuel costs. Malik stressed the importance of unity, discipline, and diplomatic efforts to mitigate the ongoing crisis.
For a detailed overview of the government’s economic response and subsidy initiatives, visit our coverage on Pulse Pakistan.
