Pakistan raises fuel prices by 43%

Pakistan's government has increased petrol prices by 43% and high-speed diesel by 55% overnight. This decision is linked to rising oil prices due to the ongoing war in Iran. The petrol minister stated that the government has "limited resources" and sees no end to the conflict. Pakistan relies heavily on imported oil, with significant supplies coming through the Strait of Hormuz. Recently, the country announced it has arranged safe passage for some ships under its flag through the Strait, despite Iran effectively closing the route. This price hike is the second since the war began, making petrol 77% more expensive and diesel 87% higher than before the conflict started. Some users will receive subsidies. Motorcyclists can get a subsidy of Rs100 per litre on up to 20 litres of petrol each month for the next three months. Intercity public transport operators will receive a Rs100 per litre subsidy on diesel, and passenger bus services can get up to Rs100,000 per month. Farmers with smaller land plots will receive a one-time payment of 1,500 rupees per acre during the harvest season. For goods transport, including trucks, there will be a monthly fuel subsidy of up to Rs70,000. Additionally, the government will support Pakistan Railways to help keep fares manageable. Finance Minister Muhammad Aurangzeb mentioned that the government's ability to provide relief is limited due to financial issues, and any support can only go so far. He also noted that these measures will be reviewed weekly, with adjustments made as needed.