Pakistan keeps fuel hikes below global surge

March 24, 2026 (MLN): Pakistan has maintained a relatively moderate increase in fuel prices despite a sharp global surge, showing a calibrated approach aimed at balancing fiscal sustainability with public relief.

Global fuel prices, particularly diesel and petrol, have risen significantly across both developed and emerging economies in recent weeks.

Several countries have implemented steep hikes ranging between 27% and 71% or more, compared to Pakistan’s relatively contained increase of around 22% to 24%.

Sharing his views on social media platform X, Advisor to the Finance Minister Khurram Schehzad noted that many economies especially emerging markets have passed on the global price shock more aggressively to consumers.

In contrast, Pakistan has attempted to cushion the impact through a more balanced pricing strategy.

He highlighted that the retail tax on petroleum products in Pakistan stands at approximately 25%, including 16% on diesel and 33% on petrol, which is lower than the regional average of around 35%.

Additionally, Pakistan is currently maintaining 0% sales tax on petroleum products, compared to the standard 18% rate applied in most sectors, providing further relief to consumers.

The advisor emphasized that the government’s approach shows a careful balance between maintaining fiscal discipline and minimizing the burden on the public, particularly at a time when global economic conditions offer limited room for prolonged subsidies.

He added that the broader global trend points towards price rationalization, as most economies increasingly move away from long-term fuel subsidies due to rising fiscal pressures.

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