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.
Oil Falls as US Moves to Free Stranded Ships in Strait of Hormuz
Oil prices edged lower on Monday after Donald Trump said Washington would begin efforts to free ships stranded in the Strait of Hormuz, although the absence of a US-Iran peace deal kept crude trading above $100 a barrel. Brent crude futures fell 64 cents, or 0.59%, to $107.53 a barrel by 2308 GMT, extending a $2.23 drop on Friday. U.S. West Texas Intermediate crude stood at $101.10 a barrel, down 84 cents, or 0.82%, after losing $3.13 in the previous session. Read More: Crude Rally Sparks Fears of $140 Oil Amid Rising Tensions Markets reacted to Trump’s announcement of a maritime initiative aimed at easing congestion in the Strait of Hormuz, a key route for roughly a fifth of global oil supply. The waterway has faced severe disruption due to ongoing tensions involving Iran, raising fears of prolonged supply constraints. “For the good of Iran, the Middle East, and the United States, we have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business,” Trump wrote on his Truth Social platform. He expanded on the plan, calling it “Project Freedom,” and said it would begin Monday morning Middle East time. Trump added that countries not involved in the conflict had requested U.S. assistance to free their vessels. “Countries from all over the World… have asked the United States if we could help free up their Ships, which are locked up in the Strait of Hormuz,” he said, describing them as “neutral and innocent bystanders.” He warned that any interference with the operation “will, unfortunately, have to be dealt with forcefully,” while framing the effort as a humanitarian step. “Many of these Ships are running low on food, and everything else necessary for largescale crews to stay on board in a healthy and sanitary manner,” he said. Stalled talks keep oil above $100 Despite the announcement, oil prices remained supported as diplomatic progress between Washington and Tehran stalled. Negotiations continued over the weekend, with both sides assessing responses but holding firm on key demands. Read More: US President Donald Trump Threatens Iran’s Oil and Power Infrastructure if Talks Fail “Peace talks have been stalled as both sides refuse to move on their respective red lines,” analysts at ANZ said. Trump has pushed for a nuclear agreement with Iran. Tehran has suggested postponing nuclear discussions until the conflict ends and both sides lift shipping blockades in the Gulf. The lack of a breakthrough has kept traffic in the Strait limited, sustaining concerns about supply disruptions. Traders continue to price in geopolitical risk as long as tensions threaten one of the world’s most critical oil corridors. OPEC+ output increase seen as limited support Separately, OPEC+ said on Sunday it would raise output targets by 188,000 barrels per day in June for seven member countries, marking a third straight monthly increase. Read More: Think Saudi Arabia Has the Most Oil? Here’s the Real Top 10 List The increase matches May levels but excludes the share of the United Arab Emirates, which left OPEC on May 1. Analysts expect the additional supply to have limited impact while conflict-linked disruptions persist in the Strait of Hormuz. Energy markets remain sensitive to developments in both diplomacy and shipping security. Until flows normalize or a deal emerges, prices are likely to stay volatile and elevated.
