Pakistan Petroleum Minister Ali Pervaiz Malik on Thursday announced a sharp hike in fuel prices, raising costs of petrol by PKR 137.24 per litre and that of diesel by PKR184.49 per litre. The hike translated to petrol now being sold in Pakistan at PKR 458.4 per litre and high-speed diesel (HSD) at PKR 520.35 per litre. The announcement was made by Finance Minister Muhammad Aurangzeb at a press conference.

Shortly after the briefing, the energy ministry issued a notification confirming the revised rates, reported Pakistani media website Dawn. Malik stated that the updated prices would come into effect from Friday.

Kerosene prices have also been increased by PKR 34.08 per litre to PKR 457.80 per litre.

For context, 1 Indian Rupee (INR) is around 3 Pakistani Rupees (PKR).

The latest revision comes amid a global fuel crunch triggered by the ongoing US-Israeli conflict with Iran, which began on February 28. The conflict resulted in the closure of the Strait of Hormuz, through which 20% of the world’s fuel and gas passes.

The announcement follows remarks by Pakistani Prime Minister Shehbaz Sharif last week, where he said he had turned down a third proposal to raise petrol prices by PKR 95 per litre and diesel by PKR 203 per litre since the conflict began, Dawn reported.

Earlier, the PM had also rejected recommendations for increases of PKR 76 per litre for petrol and PKR 177 per litre for diesel. He noted that a similar proposal had been declined after international oil prices surged on March 13.

However, shortly after the conflict began, the government had initially raised petrol and diesel prices by PKR 55 per litre on March 6, followed by strict austerity measures announced on March 9 as part of its response.

Aurangzeb, however, did announce a few relief measures at the briefing. He said a subsidy of PKR 100 per litre would be provided for two-wheelers, capped at 20 litres per month, for a period of three months.

For the agriculture sector, small farmers will receive a one-time subsidy of PKR 1,500 per acre, the Dawn report stated.

In the transport sector, a PKR 100 per litre subsidy will be extended to inter-city and goods transport vehicles running on HSD, with prices to be reviewed monthly. Trucks transporting a majority of food items will receive direct support of PKR 70,000.

Additionally, large transport vehicles will be given PKR 80,000 per month, while inter-city passenger and public service vehicles will receive PKR 100,000 per month to help keep fares stable.

Aurangzeb also said subsidies would be extended to support low-income passengers using rail services.

However, he did not provide a timeline for when these relief measures would be implemented.