Pakistan faces fuel shock as up to 54% fuel price hike leaves wallets running on empty

ISLAMABAD: Pakistanis faced record fuel price increases Friday, as petrol and diesel prices rose by up to 54% driven by the war in the Middle East that has caused global oil prices to surge.

The increase adds pressure to a cash-strapped nation already grappling with high inflation, as economists warned the hike would push up food prices and living costs.

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Pakistan's Petroleum Minister Pervez Malik said late Thursday that the increase was "unavoidable." He said the government was compelled to raise petrol prices by 137 rupees (49 cents) per liter, following a 20% increase last month.

Diesel prices were increased overnight by 184.49 rupees (67 cents) per liter, a rise of about 54.9%.

Malik said the adjustments were "necessary and unavoidable" in line with global market trends, adding that the government plans to subsidize fuel for motorcyclists, though a mechanism has yet to be finalized. Motorcycles overwhelmingly outnumber cars in Pakistan, accounting for nearly 78% of all vehicles on the road, as they are among the most affordable modes of commuting.

On Friday, Interior Minister Mohsin Naqvi said public transport in Islamabad will be free for 30 days from Saturday on the prime minister's instructions, and his ministry will cover the fuel costs.

Pakistan in recent weeks has used alternate routes to get oil due to the closure of the Strait of Hormuz.

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The unprecedented price increase came after Prime Minister Shehbaz Sharif said regional instability had affected Pakistan's fragile economy. He said the government was pursuing diplomatic efforts to ease tensions and encourage dialogue between the parties involved.

Pakistan has offered to host peace talks, though no dates have been announced for any such meetings in Islamabad.

However, for many citizens, the impact of the ongoing tensions and recent fuel price increases was immediate, with households and commuters bracing for higher transportation and daily living costs.

"It's not just gas," said Mohammad Zain Alvi, a commuter waiting for a bus in Islamabad. "Life was already very difficult for us, and now everything will become more expensive."

Across major cities Friday, fuel stations were unusually quiet and traffic noticeably lighter as many people stayed home, unable or unwilling to bear the higher costs. At some stations, customers stood in silence after hearing the new rates.

"We have nothing to do with the war," said Azhar Ali, a junior government employee who uses an old motorcycle to commute from Rawalpindi to Islamabad. "Why are we being made to pay for it? This will affect everything - transport, food, our entire lives."

In the northwestern city of Peshawar, motorcycle rider Sher Khan said he was uncertain how he would continue working after the spike in fuel prices. He delivers food in the capital of Khyber Pakhtunkhwa province.

"I earn so little for each ride, and now most of it will go into fuel," he told The Associated Press.

Jabran Sarfraz, a prominent economist in Karachi, said the immediate burden would fall on consumers, warning that higher fuel prices would raise the cost of daily necessities and disproportionately affect lower-income groups. He said the duration of the impact would depend on how quickly global prices ease.