Pakistan hikes fuel prices again amid Middle East conflict

Pakistan has again raised consumer prices for diesel and petrol, marking the second such increase in under a month. Diesel prices surged by 54.9% to 520.35 Pakistani rupees per litre, while petrol prices climbed by 42.7% to 458.40 Pakistani rupees per litre, effective from Friday. These adjustments are a direct consequence of escalating international crude oil prices, exacerbated by the ongoing conflict in the Middle East. Petroleum Minister Ali Pervaiz Malik stated that the price hike was unavoidable due to global market volatility.

The government has introduced targeted relief measures to support vulnerable groups. Finance Minister Muhammad Aurangzeb announced a three-month subsidy of 100 Pakistani rupees per litre for two-wheeler users, capped at 20 litres monthly. Additionally, small farmers will receive a one-time subsidy of 1,500 Pakistani rupees per acre to support the agriculture sector, which is vital to Pakistan's GDP and food security. The minister also noted that continuing extensive subsidies is no longer financially feasible given limited resources and the uncertain duration of the global conflict.