Pakistan Hikes Fuel Prices Again as Iran War Pushes Oil Higher

Pakistan on Thursday sharply increased petrol and diesel prices for the second time in less than a month, as the war in the Middle East and surging global oil prices continue to hit import-dependent economies. The new rise is expected to deepen inflationary pressure on households and businesses already struggling with high living costs.

Under the revised rates, diesel jumped nearly 55% to about 520 rupees per litre, while petrol rose more than 42% to around 458 rupees per litre. Petroleum Minister Ali Pervaiz Malik said the increase was unavoidable, blaming an international oil market that had “gone out of control” after the U.S.-Iran war.

This follows an earlier fuel increase of around 20% last month, meaning transport and energy costs in Pakistan have risen sharply in a matter of weeks. Officials say the impact is directly tied to instability in regional supply routes and the rising cost of imported fuel.

Finance Minister Muhammad Aurangzeb said the government would offer targeted subsidies for small farmers, motorcyclists and intercity goods and passenger transport. He said Islamabad had already spent 129 billion rupees on subsidies in the past three weeks, but could no longer maintain broad fuel support because of limited fiscal space.

Pakistan remains especially vulnerable because much of its oil supply comes from Saudi Arabia and the United Arab Emirates, with shipments historically moving through the Strait of Hormuz. Continued disruption there has heightened fears of further supply shocks and more price increases if the conflict drags on.

Global oil markets have turned highly volatile since the escalation of the Iran war, with U.S. crude rising more than 11% and Brent crude nearly 8% in a single day this week after President Donald Trump signaled more military action. Analysts warn prices could rise even further if supply flows remain disrupted.

Higher fuel costs are already feeding into broader inflation risks across many import-dependent countries. Economists say rising transport, food and energy prices could hit poorer households hardest, especially in countries like Pakistan where fuel costs directly affect farming, freight and daily commuting.

The latest increase shows how quickly geopolitical conflict abroad is translating into economic pain at home for Pakistan. If oil prices remain elevated and regional supply routes stay under pressure, fuel costs could become an even bigger political and financial burden in the weeks ahead.

The post Pakistan Hikes Fuel Prices Again as Iran War Pushes Oil Higher appeared first on Khaama Press.