Petrol, diesel prices jump as Pakistan reviews fuel weekly
Pakistan raised petrol and diesel prices for one week, citing surging global oil costs linked to Middle East supply disruptions, while officials denied social media rumours of petrol pump closures and urged the public to rely on verified sources.
Pakistan on Thursday sharply increased domestic fuel prices, lifting petrol by Rs6.51 per litre and high-speed diesel by Rs19.39 per litre, as the government adjusted rates in response to volatile international oil markets and supply fears tied to conflict around the Strait of Hormuz.
Read More: Govt Freezes Oil Prices for a Week
Under the new pricing, petrol will sell at Rs399.86 per litre, up from Rs393.35, while high-speed diesel will rise to Rs399.58 from Rs380.19. The revised rates will remain effective for one week under the government’s emergency weekly pricing framework, introduced after escalating Middle East tensions disrupted global crude supply chains. According to recent official pricing notifications by the Oil and Gas Regulatory Authority, Pakistan had already raised fuel prices multiple times this year as Brent crude surged.
The increase is expected to intensify inflationary pressure across Pakistan’s agriculture and transport sectors. Diesel is a critical fuel for heavy transport, tractors, tube wells, and harvest machinery, making it especially significant during the current crop sowing season. Higher diesel costs are likely to push up food production expenses and fertilizer distribution costs, adding to broader consumer price pressures.
Pakistan’s agriculture sector contributes nearly 23% to GDP and employs more than a third of the labor force, according to government economic surveys. Rising transport and input costs could therefore deepen challenges for rural households already facing elevated fertilizer and electricity prices.
The government had previously subsidized motorists by Rs100 per litre to cushion consumers from earlier oil shocks, but mounting fiscal constraints and sustained international crude volatility have made blanket subsidies increasingly difficult. Pakistan remains heavily dependent on imported oil, much of it sourced from Gulf producers including Saudi Arabia and the UAE, with shipments passing through the strategically vital Strait of Hormuz, through which roughly one-fifth of global oil supply flows.
Authorities also moved to counter panic buying after viral social media claims suggested petrol pumps would shut for five days from May 1. The Petroleum Division, OGRA, and the Oil Companies Advisory Council jointly dismissed those reports as false, stating that Pakistan currently holds around 28 days of petrol reserves and 34 days of diesel stocks.
Officials confirmed that all fuel stations nationwide would remain operational and that supply chains remain intact despite regional instability. The public was urged to ignore misinformation and avoid unnecessary hoarding.
Global oil markets have remained volatile as conflict-related disruptions in the Gulf have raised concerns over export bottlenecks, insurance costs, and refinery operations. For Pakistan, where fuel imports significantly affect inflation and fiscal balances, sustained price increases could further complicate monetary and economic stability efforts already under scrutiny by the IMF and domestic policymakers.
The latest fuel hike reinforces how vulnerable Pakistan’s economy remains to external energy shocks, with petrol and diesel pricing now central to inflation, agriculture costs, and broader fiscal policy.