ISLAMABAD: The new fiscal year has begun with a sharp hike in fuel prices, adding to the burden on consumers already grappling with inflation.
Petrol prices have risen by Rs 8.36 per litre to Rs 266.79, while high-speed diesel has seen an even steeper increase of Rs 10.39 per litre, taking it to Rs 272.98.
In addition, the government has imposed a new Petroleum Climate Support Levy of Rs 2.5 per litre on petrol, diesel, and furnace oil. This new levy is expected to further strain household budgets.
According to official documents, the ex-refinery price of petrol has increased from Rs 155.87 to Rs 165.30 per litre.
Economic experts attribute the price hike to global factors, particularly the Iran-Israel conflict and the rising value of the US dollar, which have driven up international oil prices.
Economist Khakan Najeeb explained that the regional tensions created a “risk premium” of about $10 per barrel, pushing crude prices from $65 to $75. He also pointed to the rupee’s depreciation as a key factor amplifying the cost for Pakistan.
Najeeb warned that if global crude prices climb to $80–90 per barrel, it will place even greater pressure on Pakistan’s economy and import bill. He suggested the country urgently needs to reduce reliance on fossil fuels by shifting to electricity generation, noting Pakistan’s existing 45,000 MW power capacity.
Experts also emphasise the importance of encouraging electric vehicles and other alternative energy sources. They argue that establishing a free and competitive domestic market could help deliver long-term relief to consumers facing persistently high fuel costs.
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