Pakistan Struggles With Ramzan Costs As West Asia Conflict Pushes Fuel Prices Up By PKR 55 Per Litre

Last Updated:March 12, 2026, 14:41 IST

Oil price hikes raise transportation costs, push up daily-use commodities, reduce purchasing power, increase poverty, slow economic activity and fuel public anger in Pakistan.

Pakistan, caught between the Iran war and Afghanistan, is grappling with a sharp PKR 55 per litre increase in fuel prices, which is sending ripple effects across the country. Rising fuel costs are driving up transportation expenses, pushing food prices higher, and adding to the burden on households already dealing with traditional inflation during the holy month of Ramzan, reports Dawn.

“It was the last thing Pakistanis needed and the government delivered it mercilessly," said one resident. Traders and professionals have expressed frustration, saying the government’s handling of the increase has deepened public discontent. 

Oil price hikes raise transportation costs, push up daily-use commodities, reduce purchasing power, increase poverty and unemployment, slow economic activity, and fuel public anger.

Daily wage earners hit hard

For workers like Muhammad Ramzan, a food delivery motorcyclist, the hike consumes 16.5% of his daily income. Many residents report immediate effects on fruit and vegetable markets, where prices jumped 20-25% overnight.

Transport and travel costs surge

Transport fares across cities, including Karachi, Lahore, and Peshawar, have risen sharply. Rickshaw, bus, and ride-hailing fares have increased by PKR 10 to PKR 30 per trip. Inter-city travel has become costlier, affecting commuters, hospital visits, and daily routines.

Commodity prices soar

In Peshawar, the price of a 20 kg flour bag increased by PKR 50-100 due to rising milling and transport costs. Fuel sales have declined, with some stations seeing daily sales drop from 8,000 litres to 3,000 litres.

Economic ripple effects

The increase in fuel prices is affecting all sectors of the economy, which is already struggling. Traders, transporters, and residents are adjusting immediately, while businesses face higher operating costs. Households struggle to manage rising expenses, reflecting the wider impact of fuel inflation across Pakistan.

News world Pakistan Struggles With Ramzan Costs As West Asia Conflict Pushes Fuel Prices Up By PKR 55 Per Litre

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