Islamabad : Fuel prices in Pakistan have surged sharply, with petrol crossing PKR 458 per litre and high-speed diesel (HSD) exceeding PKR 520 per litre. The government has raised petrol prices by 43% and diesel by 55%, marking one of the steepest hikes in recent times.
The increase follows a spike in global crude oil prices amid the ongoing conflict involving Iran and the United States. The revised fuel prices came into effect from midnight on Thursday.
Petrol prices have risen by PKR 137.23 to PKR 458.41 per litre, while diesel has increased by PKR 184.49 to PKR 520.35 per litre. Kerosene prices have also been raised by PKR 34.08, reaching PKR 457.80 per litre.
Just last month, fuel prices had already gone up significantly, with petrol at PKR 321.17 and diesel at PKR 335.86 per litre. The Pakistani rupee’s lower value compared to the Indian currency means fuel remains significantly costlier in relative terms. For comparison, in New Delhi, petrol is around ₹94 per litre and diesel about ₹87.
To manage the price structure, the government has revised petroleum taxes. Taxes on petrol have been increased from PKR 105 to PKR 160 per litre, while taxes on diesel have been reduced from PKR 55 to zero to limit further price escalation.
Petroleum Minister Ali Pervaiz Malik described the move as difficult but necessary given global market conditions. He said the government aims to maintain fiscal discipline and economic stability, adding that subsidies will now be limited to the most vulnerable sections.
Economic adviser Khurram Shahzad noted that fuel consumption had risen sharply last month—petrol by 8% and diesel by 13%. The price hike, he said, is intended to curb demand. He also mentioned that the government had tried to hold prices steady for three weeks but was ultimately forced to act.
Global oil prices have surged following disruptions in the Strait of Hormuz after the conflict escalated on February 28. Brent crude is currently trading at around $109 per barrel, contributing to the continued rise in fuel costs.