ISLAMABAD – Pakistan witnessed another massive increase in fuel prices, with petrol price set at Rs423 per litre as the government jacked up Rs100 petr litre in wake of rising global oil costs to consumers, Petroleum Minister Ali Pervaiz Malik announced on Thursday. The announcement comes as global oil prices continue to climb, putting pressure on households and businesses across the country.
Malik revealed the new rates during a press briefing held alongside Finance Minister Muhammad Aurangzeb. At the outset, he expressed gratitude to President Asif Ali Zardari, the chief ministers of all provinces, and the leadership of allied parties for their guidance during what he described as a “critical time.”
Petrol, which was previously priced at Rs321.17 per litre, has now been raised to Rs458 per litre, marking an increase of Rs100. Diesel has seen an even sharper rise, jumping from Rs335.86 per litre to Rs520 per litre, an increase of Rs200.
New Petrol Price in Pakistan
| Product | Old Price | New Price | Increase |
|---|---|---|---|
| Petrol | 321.17 | 458.40 | 137.23 |
| Diesel | 335.86 | 520.35 | 184.49 |
The government is shifting most of the burden of higher international oil prices directly onto the public, while offering only limited subsidies to certain groups such as farmers and motorbike riders.
The possible price hike was discussed during a high-level meeting chaired by Finance Minister Muhammad Aurangzeb, which was attended by chief ministers from all four provinces, the finance minister of Khyber Pakhtunkhwa, and senior federal officials. Insiders say a final decision on the new petrol prices could be announced within days, although exact figures remain uncertain due to volatile global oil markets.
Estimates suggest the difference has reached around Rs100 per litre for petrol and over Rs200 per litre for diesel. Authorities are considering making consumers bear the full petrol price difference while covering only about half of the diesel gap through subsidies. Final calculations are expected from the Petroleum Division and the Oil and Gas Regulatory Authority (Ogra) later this week.
Last month, the government spent about Rs129 billion on fuel subsidies. The administration led by Prime Minister Shehbaz Sharif now aims to keep the total subsidy spending below Rs158 billion, prompting discussions about shifting more costs to consumers.
Officials are also considering involving provincial governments in sharing the subsidy burden. Under the proposal, Punjab and Sindh would contribute based on population size, while Khyber Pakhtunkhwa and Balochistan would pay according to their fuel consumption levels.
Reports suggest Punjab and Sindh may support passing the full price increase on to consumers while offering targeted financial aid only to priority sectors. However, officials warn that such a move could trigger strong political backlash as inflation continues to strain household budgets.
The situation is unfolding amid a global fuel crisis. Oil prices have surged in more than 85 countries following supply disruptions linked to the Iran war. In Pakistan, petrol prices have already risen by nearly 20 percent, while India has largely managed to keep domestic fuel prices stable despite the global surge.
