Karachi/Islamabad, April 2, 2026: The government of Pakistan has announced a massive increase in fuel prices, raising petrol to Rs459 per litre and high-speed diesel to Rs521 per litre, marking the highest levels in the country’s history.
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The petroleum levy on petrol was sharply increased from Rs106 to Rs161 per litre—a Rs55 hike—while the diesel levy was abolished, with a Rs2.5 per litre carbon levy retained. Kerosene and light diesel oil prices were also raised to Rs468 and Rs395 per litre, respectively.
Officials said the price hike was necessitated after the government failed to secure additional fuel subsidies from the International Monetary Fund (IMF), which capped maximum subsidies at Rs152 billion. Rising global oil prices, compounded by the closure of the Strait of Hormuz amid Middle East tensions, further contributed to the surge.
This is the second major fuel price increase in less than a month, pushing the cumulative petrol increase to 63% and diesel to 75%. Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb announced the new rates via a pre-recorded video, as Prime Minister Shehbaz Sharif did not directly address the public this time.
The government faced criticism for passing the financial burden onto consumers at a time when poverty, unemployment, and income inequality are at decades-high levels. Analysts have warned that these increases could further inflate transportation costs and consumer goods, intensifying public hardship.
