The new petrol price has been set at ₨458.40 per liter, which is an increase of ₨137.23 compared to the previous price. 

High-Speed Diesel (HSD) also saw a drastic price increase to ₨520.35 per liter, marking an increase of ₨184.49 per liter. 

Additionally, the petroleum levy (tax) on petrol has been increased to ₨161 per liter, a record high. 

Why Did This Happen?

The government has cited global oil price hikes, particularly the rising prices due to the ongoing conflicts in the Middle East and supply disruptions in global markets. 

The government explained that bearing the subsidy burden was no longer sustainable, leading to this price increase. However, they are introducing targeted subsidy measures, such as subsidies for motorcycle riders, to ease the impact on the most vulnerable. 

Impact on the Public and the Economy

This price hike has made fuel prices in Pakistan some of the highest in the world, with the country now ranking second in the world for the highest fuel prices based on income levels, only behind Ethiopia. 

There are concerns about increased inflation, transportation costs, and economic strain on the public.

A viral video has resurfaced where former Prime Minister Imran Khan had predicted this exact increase in fuel prices, leading to further public discontent. 

Government’s Response and Measures

In response to public backlash, the government has introduced targeted relief packages, including subsidies for motorcycle riders to reduce the impact of this hike. 

The government also mentioned that further reviews of fuel prices will be conducted based on future fluctuations in global markets.