ISLAMABAD — In a late-night national broadcast, the federal government announced a historic and “difficult” hike in petroleum prices, effective immediately. Driven by the global energy volatility of the US-Israel-Iran conflict, the government has officially pivoted from blanket subsidies to a targeted relief model to maintain fiscal discipline and prevent a total financial collapse.
The New Price Regime (April 3, 2026)
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Petrol: Increased by Rs137.23 to Rs458.41 per litre (42.7% hike).
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High-Speed Diesel (HSD): Increased by Rs184.49 to Rs520.35 per litre (55% hike).
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Kerosene Oil: Increased by Rs34.08 to Rs457.80 per litre.
The “Surge & Shield” Strategy
Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb clarified that while the base prices have exploded due to crude oil hitting record highs (with diesel touching $250/barrel globally), the state is deploying a targeted subsidy framework to protect vulnerable sectors.
1. Relief for the Common Man & Farmers
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Bikers: A subsidy of Rs100 per litre for two-wheelers, capped at 20 litres per month for the next 90 days.
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Small Farmers: A one-time support of Rs1,500 per acre during the current harvest season to offset rising tube-well and machinery costs.
2. Transport & Food Supply Chain
To prevent a runaway increase in food prices and passenger fares, the government has adjusted the Petroleum Levy:
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Levy on Petrol: Raised to Rs160/litre to maintain revenue.
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Levy on Diesel: Slashed to Zero to cushion the impact on freight.
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Direct Cash Support: * Food Trucks: Rs70,000 per month.
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Large Transport: Rs80,000 per month.
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Inter-city Buses: Rs100,000 per month.
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Energy Conservation: Early Market Closures
In a move to manage the national power load, the government has mandated early market closures across the country. This measure is expected to save approximately 1,200MW of peak electricity demand. Specific timings are being finalized in consultation with provincial administrations.
Strategic Context: Civil-Military Consensus
The Finance Minister noted that these “responsible” decisions were reached through a consultative process involving the President, PM, military leadership, and all Chief Ministers. The objective is to keep Pakistan within the fiscal limits of its international commitments (IMF) while avoiding the fuel shortages and law-and-order crises currently seen in other energy-importing nations.
“We have managed to secure our supply lines despite an 80-90% increase in crude benchmarks. This shift to targeted relief ensures we don’t slip back into a financial crisis,” stated Minister Malik.
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