Pakistan is facing a major economic challenge as fuel prices rise sharply across the country. The latest increase in the Petrol Price has created concern among citizens and businesses. The government has raised petrol to Rs458.40 per litre, up from Rs321.17. This marks a massive increase of Rs137 per litre.
At the same time, diesel prices have also surged. Diesel now costs Rs520.35 per litre, compared to the previous Rs335.86. This is an increase of Rs184.49. The sharp rise in both petrol and diesel is expected to impact daily life and transportation costs.
The announcement was made by Petroleum Minister Ali Pervaiz Malik during a press conference. He was joined by Finance Minister Muhammad Aurangzeb. The ministers said the decision was taken due to rising global oil prices. They described the situation as a critical time for the country.
Officials explained that international oil prices have increased due to global supply disruptions. These disruptions are linked to tensions involving Iran. As a result, many countries are facing higher fuel costs.
The government has decided to pass most of this burden to the public. However, some limited relief may be given to specific groups. These include farmers and motorbike users. Authorities said subsidies cannot be expanded further due to financial pressure.
Last month, fuel subsidies cost the government around Rs129 billion. The administration led by Shehbaz Sharif wants to keep total subsidies below Rs158 billion. This has forced the government to reduce support and increase fuel prices.
Provincial governments are also expected to share part of the subsidy cost. Punjab and Sindh may contribute based on population. Meanwhile, Khyber Pakhtunkhwa and Balochistan could contribute based on fuel usage. Some reports suggest provinces may support passing the full increase to consumers.
The rising Petrol Price is likely to increase inflation. Transport costs will rise, affecting goods and services. Businesses may also face higher operating expenses.
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Experts warn that this situation could put more pressure on household budgets. The latest Petrol Price hike may trigger another wave of inflation in Pakistan.
