ISLAMABAD – Tougher days ahead of inflation-weary Pakistanis as petrol prices are expected to go up in May 2026 as the government is commited to IMF-backed fiscal targets.
Finance Ministry officials on the basis on anonymity revealed that petroleum levy collections are already on track to exceed the annual goal of Rs1,468 billion, but discussions are underway to push the levy even higher. This move comes on top of a recent increase of around Rs27 per litre, which raised the petroleum levy on petrol to over Rs107 per litre as part of IMF-linked economic measures.
The global lender continues to press crisis-hit Pakistan to end fuel subsidies and rely more heavily on taxation, particularly through petroleum levies, as part of broader fiscal discipline requirements. The government reportedly assured the IMF that it will continue tightening financial management and maintain reform commitments.
Petrol price in Pakistan have seen sharp and repeated increases driven by global oil market instability and regional geopolitical tensions. However, officials and analysts acknowledge that a major portion of the rise is being fueled not by international prices, but by domestic taxation policies.
The situation already triggered nationwide anger. Just last week, petrol prices surged to nearly Rs393 per litre, sparking outrage among citizens, trade unions, and civil society groups who say the increases are deepening inflation and pushing everyday life out of reach for ordinary households.
Commuters and low-income groups, especially online riders report severe pressure on their monthly budgets as transport and commodity prices continue to climb. Petrol hikes are especially impacting motorcycle riders, rickshaw drivers, and small vehicle owners, while diesel price increases are expected to ripple through freight transport, agriculture, and industrial supply chains, potentially raising the cost of almost everything in the economy.
Trade unions also strongly condemned the situation, warning that workers are being crushed under rising fuel, electricity, and gas costs. They say essential needs such as education, healthcare, and basic living expenses are becoming increasingly unaffordable and have demanded an immediate rollback of fuel price increases along with higher transport allowances to cope with soaring fares.
