Pakistan hit by global oil crisis, diesel prices up by 55%, petrol 42%

Islamabad (TIP): Pakistan on Thursday, April 2, sharply increased consumer prices for diesel and petrol, marking its second hike in less than a month, as global oil prices surged amid the ongoing conflict in the Middle East.
The price of diesel has been raised by 54.9% to 520.35 Pakistani rupees ($1.88) per litre, while petrol prices have gone up by 42.7% to 458.40 Pakistani rupees per litre.
Petroleum Minister Ali Pervaiz Malik said the increase was unavoidable due to the spike in international crude prices. “It was inevitable to raise the prices due to the international market prices going out of control after the US-Iran war,” he said during a news conference telecast on state television, alongside Finance Minister Muhammad Aurangzeb.
Last month, Pakistan had already raised diesel and petrol prices by around 20%, citing higher oil prices driven by the US-Israeli war on Iran.
The latest hike is expected to push inflation higher and further strain the country’s impoverished population. Pakistan relies heavily on oil imports, primarily from Saudi Arabia and the UAE, transported through the Strait of Hormuz.
Aurangzeb announced targeted relief measures to cushion the impact on vulnerable groups. The government will provide a subsidy of 100 rupees per litre for two-wheeler users, capped at 20 litres per month, for a period of three months.
He also announced support for the agriculture sector, stating that small farmers will receive a one-time subsidy of 1,500 rupees per acre. Aurangzeb noted that agriculture contributes about 24% to Pakistan’s GDP and remains critical to food security.
Malik added that the government had provided subsidies worth 129 billion rupees over the past three weeks, but continuing such support was no longer financially viable. “Since the resources are limited and there is no end to this war in sight, there was no way to continue with a blanket subsidy,” he said. Global oil markets have remained volatile, with US oil prices jumping more than 11% on Thursday, while Brent crude surged over 7% a day after US President Donald Trump said military operations would be intensified.