The Pakistan government has announced a substantial increase in fuel prices, with petrol seeing a 43% hike and high-speed diesel (HSD) rising by 55%. Petrol prices have surged by PKR 137.23 per litre, reaching PKR 458.41, while HSD prices have gone up by PKR 184.49 per litre, now standing at PKR 520.35.
To mitigate the impact on transportation and freight costs, petroleum levy rates were adjusted. The levy on petrol was increased to PKR 160 per litre from PKR 105, while it was eliminated on diesel from PKR 55, as reported by Dawn.
Pakistan’s Petroleum Minister, Ali Pervaiz Malik, described the decisions as “difficult and responsible,” highlighting the involvement of top officials in the process. The aim is to target subsidies to the most deserving groups while upholding fiscal discipline and safeguarding the economic stability achieved in the past two years under international commitments.
In addition to the price hikes, the government introduced targeted relief measures. These include a PKR 100 per litre subsidy for two-wheeler users, limited to 20 litres per month for three months, and a one-time PKR 1,500 per acre subsidy for small farmers during the harvest season.
