Pakistan Hikes Fuel Price: The Pakistani government sharply increased fuel prices on Thursday, with petrol jumping by a staggering Rs 137 per litre to Rs 458.40 and diesel surging by Rs 184.49 to Rs 520.35 per litre, delivering a massive blow to inflation-weary citizens. The new prices took effect from midnight, Petroleum Minister Ali Pervaiz Malik announced at a press conference alongside Finance Minister Muhammad Aurangzeb.
The hike comes as global oil prices have climbed sharply due to supply disruptions linked to the Iran war and the effective closure of the Strait of Hormuz, which normally carries about 20% of the world’s oil.
What Is the New Fuel Price Structure?
| Product | Old Price | New Price | Increase |
|---|---|---|---|
| Petrol | Rs. 321.17 | Rs. 458.40 | Rs. 137.23 |
| Diesel | Rs. 335.86 | Rs. 520.35 | Rs. 184.49 |
At the current currency rate of Rs 0.33 per Pakistani rupee, the new petrol price equals roughly Rs 152.60 in Indian rupees, while diesel equals about Rs 173.23. For comparison, ordinary petrol in Delhi presently costs Rs 94.77 per litre, making the Pakistani price nearly Rs 58 more per litre.
Why Did Pakistan Hike Fuel Prices?
Petroleum Minister Ali Pervaiz Malik attributed the increase to rising global oil costs and ongoing Middle East instability. The government is passing the brunt of rising international oil costs directly onto the public, offering only limited relief to select groups such as farmers and motorbike users.
The move follows a commitment to the International Monetary Fund to pass through global cost increases to consumers. Last month, fuel subsidies cost the government nearly Rs 129 billion. Aiming to keep total subsidy spending below Rs 158 billion, Prime Minister Shehbaz Sharif’s administration is taking steps to shift more of the burden to consumers.
How Will This Affect Pakistan’s Economy?
In March 2026, inflation reached a 17-month high of 7.3%, owing primarily to rising energy prices. The latest raise is anticipated to hit commuters and businesses hard, sparking concerns about a new wave of inflation across the country.
Provincial governments may be asked to share the subsidy costs. Punjab and Sindh will contribute based on population, while Khyber Pakhtunkhwa and Balochistan will contribute based on gasoline usage. Officials warn that passing on the full raise to the public may spark political reaction in the face of rising inflation and household budget pressures.
Pakistan Fuel Price: What Is the Global Context?
The spike coincides with the Middle Eastern global fuel crisis, as supply shortages related to Iranian tensions and the effective closing of the Strait of Hormuz have caused oil prices to rise substantially in more than 85 nations. Since the start of the war on February 28, Brent crude prices have consistently been above $100 per barrel.
While Pakistan has hiked prices sharply, India has managed to keep domestic fuel rates largely stable despite the global surge. Indian petrol prices remain around Rs 95 per litre in Delhi, while Pakistani petrol now costs the equivalent of Rs 152.60 in Indian currency terms.
What Happened With the Previous Proposed Hike?  Â
In order to provide respite during the Eid season, Prime Minister Shehbaz Sharif temporarily delayed a similar Rs 137 diesel and Rs 76 petrol spike in March 2026. This hike comes after that request was rejected. Diesel will now cost Rs 184 instead of the originally suggested Rs 137 due to an even bigger rise imposed by the government.
Pakistan Fuel Price: What Relief Is Being Offered?
The government is offering limited relief to select groups such as farmers and motorbike users. However, the general public will bear the full brunt of the international price surge. Officials warn that further increases could be on the horizon if global oil prices continue to rise.
FAQs: Pakistan’s Fuel Price Hike
Q: What are the new petrol and diesel prices in Pakistan?
A: Petrol is now Rs 458.40 per litre (up Rs 137), and diesel is Rs 520.35 per litre (up Rs 184).
Q: How does this compare to Indian petrol prices?
A: Pakistani petrol now costs equivalent to Rs 152.60 in Indian Rupees, while Delhi petrol is Rs 94.77—a difference of about Rs 58.
Q: What is Pakistan’s inflation rate?
A: March 2026 inflation hit a 17-month high of 7.3%, driven largely by energy costs.
Q: What relief is being offered?
A: Limited relief for farmers and motorbike users. The general public faces the full hike.
Q: When do the new prices take effect?
A: Effective midnight, April 3, 2026.
Disclaimer: This information is based on inputs from news agency reports. TSG does not independently confirm the information provided by the relevant sources.
