Pakistan hikes diesel by PKR 19.39, petrol by PKR 6.51 amid Hormuz blockade
Synopsis
Key Takeaways
The Pakistan government has raised the price of high-speed diesel (HSD) by PKR 19.39 per litre and petrol by PKR 6.51 per litre for one week, amid the blockade of the Strait of Hormuz triggered by the Iran-US conflict, local media reported on Friday, 1 May. The hike is set to ripple across Pakistan's transport and agriculture sectors at a particularly sensitive time.
New Fuel Prices in Pakistan
According to a notification issued by Pakistan's Petroleum Division on Thursday, the price of HSD has been revised upward from PKR 380.19 to PKR 399.58 per litre. Petrol will now be sold at PKR 399.86 per litre, up from the previous rate of PKR 393.35 per litre, as reported by Pakistan's leading daily The Express Tribune.
Impact on Agriculture and Transport
High-speed diesel is the primary fuel used in Pakistan's transport and agriculture sectors. With the sowing season currently underway, the sharp rise in HSD prices is expected to significantly strain the agriculture sector. Fertiliser prices have already risen due to higher transportation costs, compounding the burden on farmers. This comes at a moment when Pakistan's rural economy can least afford additional input cost shocks.
CNG Crisis Compounds the Crisis in Khyber Pakhtunkhwa
The fuel price hike arrives on top of an existing energy crisis in Peshawar and other parts of Khyber Pakhtunkhwa (KPK). Earlier in April, CNG stations remained shut across the province, forcing public and school transport operators to switch to costlier petrol. Several areas of Khyber Pakhtunkhwa also reportedly experienced unannounced loadshedding of natural gas, further straining domestic and commercial consumers.
The majority of school van and bus operators suspended services due to the unavailability of CNG. Those who switched to petrol have raised fares, placing an additional financial burden on residents. Parents have voiced concern that disrupted school transportation is affecting children's education and daily routines.
Public Transport Operators Warn of Shutdowns
Public transport operators across the province have warned of suspending services entirely if CNG stations do not resume operations. School transporters specifically stated that running vehicles on petrol is financially unsustainable, leaving them with little choice but to halt services. The cascading effect of CNG unavailability and rising petrol prices has created a compounding mobility crisis for ordinary residents.
What's Next
The one-week fuel price revision will be reviewed by Pakistan's Petroleum Division, but analysts warn that as long as the Strait of Hormuz remains blocked amid the Iran-US standoff, sustained upward pressure on fuel prices is likely. Pakistan, which is heavily import-dependent for energy, is particularly exposed to any prolonged disruption in Gulf oil supply routes.