April 02, 2026 (MLN): In a move that has sent shockwaves across the country, the Pakistan government on Thursday announced a steep increase in petroleum prices.
Petrol prices have been raised by Rs137 per litre, taking the new rate to Rs458.40 per litre, effective from midnight.
Meanwhile, high-speed diesel witnessed an even sharper surge of Rs184 per litre, pushing its price to Rs520.35 per litre.
The announcement came during a press conference addressed by Petroleum Minister Ali Pervaiz Malik alongside Finance Minister Mohammad Aurangzeb, citing rising international oil prices as the key driver behind the hike.
Ali Pervaiz Malik noted that instability in the Middle East is affecting countries worldwide, warning that Pakistan faces increasingly severe economic challenges. He pointed out that even developed nations are struggling with energy supply disruptions, while fuel shortages and long queues have emerged in neighboring countries.
Calling for unity, he described the measures as “difficult but necessary” to prevent further economic deterioration. He added that although the government has worked over the past two years to stabilize the economy, the latest steps could put pressure on those gains despite ongoing austerity efforts.
The development marked a stark reversal from the government’s earlier stance.
Finance minister Aurangzeb explained that the government had been reviewing the situation for weeks and decided to replace blanket subsidies with targeted relief measures.
Just last week, Prime Minister Shehbaz Sharif had publicly rejected proposals to increase fuel prices, stating that the government would absorb an additional burden of around Rs56 billion instead of passing it on to the public.
However, with global oil markets under pressure, particularly after escalating geopolitical tensions in the Middle East, including conflict involving the US, Israel, and Iran, and threats to close the strategic Strait of Hormuz, the government appears to have little room left to manoeuvre.
This is the second fuel price hike in less than a month, following an earlier increase of Rs55 per litre on March 6.
Impact on Citizens:
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Transportation costs expected to skyrocket
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Inflation likely to accelerate further
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Cost of doing business to rise sharply
As fuel prices hit unprecedented levels, the latest hike is being seen as a major economic shock, with ripple effects likely to be felt across every segment of society.
MPC Decision