Petrol Prices May Cross Rs400 Amid Global Surge

ISLAMABAD (Web Desk) – Pakistanis are bracing for a major increase in fuel prices, with petrol rates feared to cross Rs400 per litre as the government weighs passing on rising global oil costs to consumers.

The expected hike follows a high-level meeting chaired by Finance Minister Muhammad Aurangzeb, attended by chief ministers of all four provinces and senior federal officials. Sources said the government is likely to increase fuel prices within days, although the exact amount is still being finalised.

Officials indicate that authorities may transfer most—or even the entire—burden of international price increases to the public, while continuing limited subsidies for selected groups such as bikers and farmers.

The urgency comes from a widening gap between domestic and global fuel prices. Estimates suggest a difference of around Rs100 per litre for petrol and over Rs200 per litre for diesel. Final calculations are expected from the Petroleum Division and the Oil and Gas Regulatory Authority later this week.

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The government has already spent Rs129 billion on fuel subsidies in March and is reluctant to exceed a total of Rs158 billion. Behind the scenes, Asif Ali Zardari and Shehbaz Sharif have urged provinces to share the financial burden. Punjab and Sindh are expected to contribute based on population, while Khyber Pakhtunkhwa and Balochistan may contribute according to fuel consumption.

However, provinces have reportedly suggested passing the full increase to consumers while offering targeted subsidies, a move officials warn could be politically sensitive.

Globally, fuel prices have surged in more than 85 countries following tensions linked to the Iran conflict, disrupting oil supplies and increasing market volatility. The rising costs are expected to further fuel inflation and increase the cost of living in Pakistan in the coming weeks.