The price of petrol has been raised by Rs137.23 per litre to Rs458.41, while high-speed diesel saw an increase of Rs184.49 per litre, taking it to Rs520.35 per litre. Kerosene oil prices were also increased by Rs34.08 per litre to Rs467.48, according to the Oil and Gas Regulatory Authority.
Officials attributed the surge to disruptions in global oil markets following strikes by the United States and Israel on Iran, after which Tehran restricted traffic through the Strait of Hormuz—a key route for global energy supplies.
The government said it had initially attempted to shield consumers through austerity measures and controlled price adjustments, but worsening global conditions forced a major revision. Authorities noted that international diesel prices have surged beyond $250 per barrel, intensifying pressure on domestic pricing.
In parallel, the petroleum levy on petrol has been significantly increased to Rs160.61 per litre, while the levy on diesel has been reduced to zero to ease pressure on transport and agriculture sectors.
The move has drawn criticism from the Pakistan Business Forum, which termed the levy hike unjustified and urged the government to withdraw it, warning of increased costs for businesses and consumers.
To offset the impact, the government announced targeted subsidies. Motorcyclists will receive Rs100 per litre subsidy on up to 20 litres monthly, while intercity public transport will get a similar subsidy on diesel. Goods transporters will be provided up to Rs70,000 per month in fuel support, and subsidies will also be extended to railways.
The government is also considering revised market timings nationwide to conserve fuel and reduce electricity generation costs, with final decisions to be made in consultation with provincial authorities.
Officials said the measures aim to balance fiscal pressures with public relief as Pakistan navigates the economic fallout of the ongoing global energy crisis.
