Petrol up by 42%, diesel by 55%: Pakistan hikes fuel prices for the second time in one month
Pakistan's Petroleum Minister Ali Pervaiz Malik explained that the price hike was inevitable due to the surge in global oil prices, deepened by the ongoing conflict in the Middle East
- Apr 3, 2026,
- Updated Apr 3, 2026 7:56 AM IST
On Thursday, Pakistan announced a sharp increase in fuel prices, marking the second hike in less than a month. The price of diesel surged by 54.9%, now priced at 520.35 Pakistani rupees ($1.88) per litre, while petrol prices saw a 42.7% jump, reaching 458.40 Pakistani rupees per litre. The new rates will take effect from Friday.
Petroleum Minister Ali Pervaiz Malik explained that the price hike was inevitable due to the surge in global oil prices, deepened by the ongoing conflict in the Middle East. "It was inevitable to raise the prices due to the international market prices going out of control after the US-Iran war," he said during a press conference with Finance Minister Muhammad Aurangzeb.
Second rise in a month
This is the second fuel price increase in just a few weeks. Last month, Pakistan raised diesel and petrol prices by around 20%, citing higher oil prices driven by the US-Israeli war on Iran.
The latest hike is expected to further strain Pakistan's already fragile economy and impact its impoverished population. Pakistan depends heavily on oil imports, particularly from Saudi Arabia and the UAE, which are transported through the vital Strait of Hormuz.
In an attempt to cushion the blow, Aurangzeb announced targeted relief measures, including a 100-rupee-per-litre subsidy for two-wheeler users, capped at 20 litres per month, for the next three months. Additionally, small farmers will receive a one-time subsidy of 1,500 rupees per acre. The agriculture sector, which accounts for about 24% of Pakistan's GDP, remains crucial to the country's food security.
Malik further stated that the government had already provided subsidies worth 129 billion rupees in the past three weeks but admitted that continuing such support was no longer financially feasible. "Since the resources are limited and there is no end to this war in sight, there was no way to continue with a blanket subsidy," he said.
Meanwhile, global oil markets have remained volatile, with US oil prices rising by more than 11% on Thursday, and Brent crude surging over 7% after US President Donald Trump indicated that military operations would be intensified in the Middle East.
On Thursday, Pakistan announced a sharp increase in fuel prices, marking the second hike in less than a month. The price of diesel surged by 54.9%, now priced at 520.35 Pakistani rupees ($1.88) per litre, while petrol prices saw a 42.7% jump, reaching 458.40 Pakistani rupees per litre. The new rates will take effect from Friday.
Petroleum Minister Ali Pervaiz Malik explained that the price hike was inevitable due to the surge in global oil prices, deepened by the ongoing conflict in the Middle East. "It was inevitable to raise the prices due to the international market prices going out of control after the US-Iran war," he said during a press conference with Finance Minister Muhammad Aurangzeb.
Second rise in a month
This is the second fuel price increase in just a few weeks. Last month, Pakistan raised diesel and petrol prices by around 20%, citing higher oil prices driven by the US-Israeli war on Iran.
The latest hike is expected to further strain Pakistan's already fragile economy and impact its impoverished population. Pakistan depends heavily on oil imports, particularly from Saudi Arabia and the UAE, which are transported through the vital Strait of Hormuz.
In an attempt to cushion the blow, Aurangzeb announced targeted relief measures, including a 100-rupee-per-litre subsidy for two-wheeler users, capped at 20 litres per month, for the next three months. Additionally, small farmers will receive a one-time subsidy of 1,500 rupees per acre. The agriculture sector, which accounts for about 24% of Pakistan's GDP, remains crucial to the country's food security.
Malik further stated that the government had already provided subsidies worth 129 billion rupees in the past three weeks but admitted that continuing such support was no longer financially feasible. "Since the resources are limited and there is no end to this war in sight, there was no way to continue with a blanket subsidy," he said.
Meanwhile, global oil markets have remained volatile, with US oil prices rising by more than 11% on Thursday, and Brent crude surging over 7% after US President Donald Trump indicated that military operations would be intensified in the Middle East.