ISLAMABAD: The government has announced a sharp increase in petroleum prices, significantly raising the cost of petrol and diesel while introducing targeted subsidies to cushion the impact on vulnerable segments.
Federal Minister for Petroleum Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb jointly addressed a press conference, confirming that petrol prices have been increased by Rs137.23 per litre, bringing the new rate to Rs458.40 per litre.
Diesel prices have also surged by Rs184.49 per litre, with the new price set at Rs520.35 per litre. An official notification has been issued, and the revised prices will come into effect from midnight tonight.
The finance minister announced a targeted subsidy package aimed at easing the burden on lower-income groups. He said motorcyclists will receive a subsidy of Rs100 per litre on up to 20 litres of petrol per month.
Additionally, intercity public transport will be provided a subsidy of Rs100 per litre on diesel, while truck and goods transport operators will receive a monthly fuel subsidy of Rs70,000. The government will also extend support to Pakistan Railways to help manage fare increases.
Aurangzeb said the decisions were taken in consultation with the country’s leadership, emphasizing that the shift from blanket subsidies to targeted relief is intended to ensure assistance reaches those who need it most.
Petroleum Minister Ali Pervaiz Malik said the global situation, particularly ongoing regional tensions, has severely impacted energy markets. He noted that crude oil prices have witnessed record increases, with diesel in international markets exceeding $250 per barrel.
He highlighted that global supply routes, particularly through the Strait of Hormuz, remain under pressure, and even countries with strategic reserves have declared energy emergencies.
Malik stressed that the government had made every effort to protect citizens through austerity measures and expenditure cuts, but was ultimately compelled to increase prices due to international commitments and rising costs.
He added that a high-level meeting involving the prime minister and chief ministers concluded that blanket subsidies were no longer sustainable amid soaring global prices.
“Timely decisions ensured uninterrupted fuel supply,” he said, adding that the government remains committed to mitigating the impact on the public while navigating the ongoing economic challenges.
