Pakistan fuel prices jump over 55% amid global oil shock

May 22, 2026 (MLN): Petroleum product prices in Pakistan have increased by over 55% amid a sharp rise in international crude oil rates driven by escalating US–Iran tensions, volatility near the Strait of Hormuz, and global supply chain disruptions, placing additional pressure on import-dependent economies including Pakistan.

The increase comes as global oil markets react to geopolitical uncertainty, with disruptions in key shipping routes contributing to higher freight and energy costs.

Pakistan, which relies heavily on imported fuels, has passed on part of this international price pressure to domestic consumers to maintain energy supply continuity and macroeconomic stability.

Federal Parliamentary Secretary for Information and Broadcasting Barrister Danyal Chaudhry said energy pricing adjustments were necessary due to external market conditions and fiscal requirements under the IMF programme, according to the press release.

He noted that the increase in the Petroleum Development Levy (PDL) was aligned with economic targets and broader fiscal discipline measures.

He added that energy policy decisions are closely linked with national security, public trust, and overall state stability, particularly at a time when global fuel markets remain highly volatile.

According to him, authorities attempted to cushion the impact of rising global prices while balancing domestic economic constraints.

Chaudhry said the recent surge in petroleum prices was primarily driven by international factors rather than domestic policy alone, cautioning against linking the increase solely to government decisions.

He also pointed to efforts to counter misinformation regarding the causes of fuel price adjustments.

He further highlighted structural weaknesses in Pakistan’s energy sector, stressing the need to reduce reliance on costly imported fossil fuels and accelerate a shift toward local and sustainable energy sources to improve long-term energy security and reduce exposure to global price shocks.

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