Pakistan’s federal government on Friday increased petrol and high-speed diesel prices by nearly Rs15 per litre each, extending a series of sharp fuel hikes that have intensified inflation concerns across the country.
According to a notification issued by the Petroleum Division, the new prices took effect from May 9. Petrol prices rose from Rs399.86 to Rs414.78 per litre, while high-speed diesel increased from Rs399.58 to Rs414.58 per litre.
The latest revision marks the third consecutive increase in fuel prices. During the previous two weeks, the government had already raised petrol prices by a cumulative Rs33.28 per litre and diesel prices by Rs46.16 per litre.
Officials linked the latest increase to higher global oil prices and rising petroleum levies amid ongoing geopolitical tensions in the Middle East.
Sources in the Petroleum Division said the government increased the petroleum levy by Rs13.91 per litre on both fuels. The levy on petrol climbed from Rs103.50 to Rs117.41 per litre, while the levy on diesel rose from Rs28.69 to Rs42.60 per litre.
Kerosene prices reduced
Despite the sharp rise in petrol and diesel prices, authorities reduced kerosene oil prices by Rs41.80 per litre.
Following the reduction, the new kerosene price stands at Rs318.96 per litre, according to the official notification.
The government has continued reviewing fuel prices every Friday night because of volatility in international energy markets linked to the ongoing US-Iran conflict.
Global crude oil prices gained more than 1% on Friday after renewed fighting between the United States and Iran raised concerns over regional stability and disrupted hopes for reopening the Strait of Hormuz, one of the world’s most critical oil transit routes.
Brent crude futures rose $1.41, or 1.41%, to $101.47 a barrel by 0123 GMT. US West Texas Intermediate crude futures climbed $1.12, or 1.18%, to $95.93 per barrel. Oil prices briefly surged more than 3% at the market opening.
Inflation fears grow
Economists and transporters warned that continued fuel hikes could intensify inflationary pressure in Pakistan, where households already face rising electricity, gas and food costs.
Petrol mainly powers motorcycles, rickshaws and small private vehicles used daily by millions of middle and lower-middle-income families. Higher petrol prices directly affect commuting costs and household budgets.
High-speed diesel plays an even larger role in Pakistan’s economy. Heavy transport vehicles, buses, trains and agricultural machinery depend heavily on diesel fuel.
Market analysts say diesel price increases often trigger higher food and transport costs because trucks carry vegetables, wheat and essential goods across the country.
Agricultural operations also rely on diesel-powered tractors, tube wells and threshers, making fuel costs a major factor in farming expenses and food inflation.
The government has defended recent price adjustments by citing global oil market conditions and fiscal pressures linked to energy imports and revenue requirements.
