The federal government of Pakistan raised the retail price of kerosene oil by PKR 4.66 per litre, bringing it to PKR 433.40 per litre effective March 28, according to a Petroleum Division notification. Petrol and diesel prices were left unchanged at PKR 321.17 and PKR 335.86 per litre, respectively.
Officials said the decision aims to shield consumers from volatile global oil markets while the state absorbs a portion of the cost. The government is making subsidy-style payments to oil marketing companies amounting to PKR 95.59 per litre on petrol and PKR 203.88 per litre on diesel.
Separately, jet fuel for commercial passenger aircraft was increased for the fifth time in 28 days, rising by PKR 5 per litre to a record PKR 476.97. Jet fuel prices have surged roughly PKR 288 per litre since March 1, when they were around PKR 188, a jump authorities attribute to the ongoing oil-market disruption linked to the West Asia conflict.
Rising aviation fuel costs and reported jet fuel shortages have already pushed airlines to raise fares. Domestic one-way fares on key routes such as Karachi–Islamabad and Karachi–Lahore have reached up to PKR 40,000, while so-called “chance seat” tickets have climbed by as much as 150 percent. Economy-class international fares to destinations including the Middle East, Toronto, Paris and Manchester have also increased significantly, with reported ranges roughly between PKR 300,000 and PKR 700,000.
Fuel-tax adjustments have added to inflationary pressures. A PKR 200 per litre increase in the fuel levy on high-octane petrol used in luxury vehicles, together with earlier rises in diesel and petrol this month, has driven up transport costs. That, in turn, has pushed up prices for everyday items such as fruits and vegetables, exacerbating the cost-of-living squeeze for many households.
The government framed its pricing moves as an attempt to balance the need for fiscal support and consumer protection amid international market volatility, while acknowledging the domestic ripple effects on transport and household budgets.
