Pakistan hikes fuel prices by up to PKR 15 for one week

Pakistan sharply increased fuel prices by up to PKR 15 on Friday as the conflict in the Middle East continues to drive up energy costs and disrupt supplies.

The price of petrol has been raised by PKR 14.92 and high-speed diesel by PKR 15 for the next week.

What is the new petrol price in Pakistan?

The new price of petrol will be PKR 414.78 and diesel PKR 414.58 per liter. The new prices will come into effect on May 9.

Last week, the government raised the price of petrol by PKR 6.51 and high-speed diesel by PKR 19.39.

Why are fuel prices rising in Pakistan?

Pakistan, which relies heavily on imported fuel, is particularly vulnerable to fluctuations in global oil markets.

Petrol and diesel prices had shot to record levels in Pakistan after the closure of the Strait of Hormuz disrupted global supplies.

On April 3, the price of petrol was increased to PKR 458.47, and that of diesel to PKR 520.35 per liter, the highest-ever price for petrol and second-highest for diesel.

Before raising prices, the government provided a subsidy of around PKR 130 billion by keeping prices unchanged for two weeks, even as global prices rose steeply.

How are rising fuel prices affecting Pakistan's economy?

Petrol prices averaged PKR 375 per liter in April, up 21% from PKR 310 per liter in March, while high-speed diesel prices rose 26% to an average of PKR 410 per liter from PKR 325.21 per liter the previous month.

Higher fuel prices shot Pakistan’s inflation rate to 10.9% in April, the first double digit reading in 20 months.

The demand for petroleum products has sharply fallen due to higher prices and the government’s austerity measures.

Diesel sales fell 7% year-on-year to 550,000 tons in April, compared with March's 590,000 tons. Petrol sales dropped 8% to 615,000 tons, compared with March's 670,000 tons.

How much tax is charged on fuel in Pakistan?

Fuel prices in Pakistan are influenced not only by global crude prices but also by the government’s tax structure, particularly the Petroleum Development Levy (PDL).

The PDL is a fixed amount per liter levied on petroleum products. It is a key source of non-tax revenue for the federal government because, unlike the general sales tax, which must be shared with provinces under the National Finance Commission Award, the petroleum levy remains entirely with the federal government.

Total petroleum levy collections reached PKR 1.33 trillion in the current fiscal year from July through April, significantly higher than the same period last year, sources said.

The government has set the PDL collection target for the entire FY26 at PKR 1.47 trillion.