Pakistan's government increased petrol and diesel prices on Thursday, according to an official notification from the Petroleum Division, as tensions between the United States and Iran continue to impact global energy markets.
The price of petrol rose by Rs6.51 per liter, while high-speed diesel increased by Rs19.39 per liter. The new price for high-speed diesel is Rs399.58 ($1.43) per liter, and petrol now costs Rs399.86 ($1.43) per liter.
The Petroleum Division stated that the revised prices will take effect from May 1, 2026. This follows a previous increase of Rs26.77 per liter last Friday, as global oil markets remain volatile.
The latest hike is a direct consequence of the ongoing war triggered by US and Israeli strikes on Iran on February 28, which continues to disrupt global energy supplies, particularly through the Strait of Hormuz. This narrow waterway between Iran and Oman handles roughly one-fifth of the world's oil and liquefied natural gas. In response to the attacks, Iran has restricted shipping through the strait, while the United States maintains a counter-blockade targeting Iranian vessels, tightening supply and pushing crude prices sharply higher.
For Pakistan, which imports the majority of its fuel, the impact has been immediate and severe. Rising oil prices are feeding into inflation, increasing transport costs, and exacerbating broader economic pressures.
Earlier on Thursday, Prime Minister Shehbaz Sharif approved a one-month extension of subsidies previously announced for motorcyclists and transport operators. The government had introduced a subsidy of Rs100 ($0.36) per liter for motorcyclists, capped at 20 liters per month. To cushion the impact of surging fuel costs, the government also announced subsidies of up to Rs70,000 ($252) per month for freight trucks, Rs80,000 ($288) for larger transport vehicles, and Rs100,000 ($360) per month for public passenger buses.
In a statement shared by his office, Prime Minister Sharif urged authorities to continue effective monitoring of public relief initiatives so that deserving individuals can benefit. He emphasized that providing relief to ordinary citizens remains the government's top priority and that the public will not be left alone under any circumstances.
