Pakistan government has announced a steep increase in fuel prices, raising petrol to Rs458.41 per litre and high-speed diesel to Rs520.35 per litre amid a worsening global energy crisis. The move was confirmed by Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb during a joint press conference.
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Petrol prices have been increased by Rs137.24 per litre, while diesel saw a larger jump of Rs184.49 per litre. The government attributed the hike to rising international oil prices and supply disruptions triggered by escalating tensions in the Middle East, particularly affecting shipments through the Strait of Hormuz.
#Pakistan on Thursday raised #consumerprices for #diesel to 520.35 rupees ($1.88) per litre and #petrolprices to 458.40 rupees per litre amid rising #global\oilprices spurred by the conflict in the #MiddleEast.https://t.co/dEz0VBziN6
— Deccan Herald (@DeccanHerald) April 3, 2026
Officials said global crude oil prices have surged significantly in recent weeks, with diesel crossing $250 per barrel in international markets. The government maintained that it had delayed passing on the full impact to consumers through austerity measures and spending cuts but was ultimately compelled to revise prices.
Alongside the increase, the government announced a shift from blanket subsidies to targeted relief measures aimed at protecting vulnerable segments. The finance minister revealed that motorcyclists would receive a subsidy of Rs100 per litre on up to 20 litres of petrol per month. Additionally, intercity public transport will benefit from a Rs100 per litre diesel subsidy, while goods transport operators will receive Rs70,000 per month in fuel support. Subsidies are also planned for Pakistan Railways to manage fare increases.
In a separate adjustment, the petroleum levy on petrol has been increased to Rs160.61 per litre, while the levy on diesel has been reduced to zero. Meanwhile, kerosene oil prices have also been raised to Rs467.48 per litre.
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Business groups have criticised the levy increase, warning of higher costs for industries and consumers. The government, however, insists the measures are necessary to manage economic pressures while ensuring continued fuel supply.