Pakistanis are preparing for a significant increase in petrol price, with rates potentially crossing Rs400 per litre. The rise comes as the government considers passing on global oil costs to consumers.
A high-level meeting chaired by Finance Minister Muhammad Aurangzeb included chief ministers of all provinces, KP’s finance minister, and federal officials. Authorities said the increase could come within days, though final figures are still being calculated.
Officials confirmed that the government may pass most, or possibly all, of the international oil price impact to consumers. Limited subsidies may still be provided to priority groups, including bikers and farmers.
The move comes as the domestic fuel price lags behind international import costs by about Rs100 per litre for petrol and over Rs200 per litre for diesel. Authorities are evaluating whether consumers should absorb the full petrol gap and part of the diesel difference.
In March 2026, Rs129 billion were spent on fuel subsidies. The Sharif-led government plans not to exceed Rs158 billion in total support this year. Provincial governments are now expected to share part of the subsidy burden under a tentative arrangement, with Punjab and Sindh contributing based on population, and KP and Balochistan based on fuel consumption.
Punjab and Sindh reportedly favor passing the petrol price increase fully to consumers while offering targeted subsidies only to essential sectors. However, officials warned such a move could create political tensions.
Global oil prices surged again after brief declines, complicating final calculations. Fuel costs have risen in more than 85 countries due to the Iran war, which disrupted oil supplies. Pakistan has already seen a 20 percent increase in fuel prices, while countries like Vietnam reported nearly a 50 percent jump.
Europe has also witnessed higher petrol prices, with Spain, Germany, France, and the UK affected. Analysts say Pakistan’s potential petrol price increase mirrors global trends and reflects growing pressure on governments to balance subsidies and international costs.
Authorities expect the Petroleum Division and the Oil and Gas Regulatory Authority (OGRA) to finalize figures later this week. Citizens are advised to monitor updates closely as the government works to implement adjustments.
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