Public transport fares in Rawalpindi and Islamabad have surged by up to 20 per cent and freight charges by as much as 20 per cent after Pakistan's federal government raised petrol and diesel prices on Friday, 19 July, according to local media reports. Petrol pump operators have separately threatened a nationwide strike over the government's policy of frequent fuel price revisions.

How Much Fares Have Risen

Transport associations in Rawalpindi and Islamabad revised fares with immediate effect following the fuel price increase. According to reports, inter-city fares in Rawalpindi district have risen by 15 per cent, intra-district fares by 17 per cent, and services operating between Rawalpindi and Islamabad by 20 per cent. The minimum stop-to-stop fare on public transport in both cities has been raised to PKR 60.

Long-distance transport operators have also increased fares by 17 per cent. Pick-and-drop services for office workers and students have announced that their charges will henceforth be revised automatically in line with any change in petrol or diesel prices — a move that effectively indexes commuting costs to international crude markets.

Freight Costs Spike on Long-Haul Routes

Goods transport operators have raised freight charges by 20 per cent. The freight charge for container, trailer, and wheeler transport on the Karachi–Peshawar corridor has reportedly risen to PKR 800,000. The increase adds pressure to supply chains across Pakistan at a time when the economy is already grappling with elevated inflation.

The Fuel Price Increase That Triggered the Crisis

On Friday, the Pakistan government raised the price of petrol by PKR 5.44 per litre and diesel (HSD) by PKR 31.05 per litre, with immediate effect for a three-day period through 20 July. After the revision, petrol stands at PKR 316.15 per litre and HSD at PKR 354.35 per litre, according to reports citing Pakistan's daily Dawn.

The government attributed the hike to higher import premiums and rising international crude prices driven by renewed tensions in West Asia. Petroleum Minister Ali Pervaiz Malik said fuel prices would now be fixed on a daily basis in response to fluctuations in international markets following renewed tensions between Iran and the US.

Strike Threat and Industry Pushback

Petrol pump operators have issued a threat of a nationwide strike, citing the government's policy of frequent price revisions as operationally disruptive. Transport associations have made clear that fares will be adjusted every time fuel prices change — a stance that, if sustained, could institutionalise fare volatility for millions of daily commuters.

This comes amid Pakistan's broader economic stress, with the country navigating an International Monetary Fund (IMF) programme that has required subsidy rollbacks and market-linked pricing across energy and fuel. The shift to daily fuel pricing marks a significant departure from the earlier fortnightly revision cycle and signals deepening exposure of domestic prices to global energy shocks.