'What’s A Poor Man To Do’: Pakistanis Feel The Pinch As Govt Hikes Fuel Prices Amid Iran War

Last Updated:April 03, 2026, 19:52 IST

Pakistan raises diesel to 520.35 and petrol to 458.40 rupees per litre, second hike in a month amid US Iran war, announces targeted subsidies as inflation risk grows

As tensions continue to escalate in West Asia, Pakistan on Thursday announced an increase in ​prices for diesel and petrol, making it a second hike within a month. With new prices coming into effect, diesel has been increased by 54.9% to 520.35 rupees ($1.88) per litre, while petrol prices have been raised by 42.7% to 458.40 rupees per litre.

“It ​was inevitable to raise the prices due to the international ⁠market prices going out of control after the US-Iran war," Pakistan’s ​petroleum minister, Ali Pervaiz Malik, said in a news conference telecast.

This marks the second increase within a month in the country. Earlier this month, Pakistan had already raised fuel prices by around 20%, also citing higher global oil rates driven by the conflict in West Asia. The latest hike is expected to have a direct impact on inflation and could further strain ordinary citizens, especially those from low-income groups.

“Alright, there may be a war going on, but shouldn’t we also think about our people? Gas has reached Rs460 ($1.64) per liter — what is a poor man supposed to do? Someone earning Rs20,000–25,000 ($70-$90) a month relies on his bike for work. What will he do now? All his money goes into gas; he has three children, and there’s hunger at home — his family is going without food," said a Pakistani citizen.

“Whatever good the government had done was undone after the outbreak of the Iran war; under pressure, they raised petrol prices, and the poor man has been crushed," he added.

Pakistan relies heavily on oil imports from countries like Saudi Arabia and the UAE, most of which pass through the Strait of Hormuz.

At the same briefing, Finance Minister Muhammad Aurangzeb announced targeted subsidies to ease the burden on certain groups. These include support for small farmers, motorcyclists, and the transport of goods and passengers.

However, the government made it clear that it cannot continue broad-based relief. Malik said the government had already provided subsidies worth 129 billion rupees over the past three weeks, but sustaining such support was no longer possible.

“Since the resources are limited and there is no end to ⁠this war in sight, there was no way to continue with a blanket subsidy," he said.

Meanwhile, global oil markets remain volatile. US oil prices rose by more than 11% on Thursday, while Brent crude jumped over 7%, a day after former US President Donald Trump indicated that military operations could intensify further.

News world 'What’s A Poor Man To Do’: Pakistanis Feel The Pinch As Govt Hikes Fuel Prices Amid Iran War

Read More