Pakistan Faces Renewed Economic Turmoil with Soaring Fuel Prices

Pakistan's economy is hit by a rise in fuel prices, triggering inflationary pressures. Petrol and diesel prices have seen notable increases, exacerbating the strain on citizens amid food price hikes and economic instability exacerbated by monsoon floods and geopolitical tensions. These challenges reflect broader governance issues.

In Islamabad, a new spike in fuel prices has intensified Pakistan's economic woes, as petrol prices rise to PKR 265.45 per litre, alongside a jump in high-speed diesel costs to PKR 278.44. This development adds to the inflationary pressures Pakistani citizens face, who are already struggling with mounting price increases, reports Dawn.

As fuel costs climb, a cascade of higher prices in food, electricity, and transportation emerges, embedding inflation more deeply into the economy. Recent statistics show a jump in headline inflation to 6.2% year-on-year in October 2025, the highest mark recorded in a year, driven by surging food prices post-monsoon floods and ongoing supply chain disruptions.

The economic challenges are compounded by policy inconsistencies and reliance on imports for essential goods such as wheat and oil, exposing the country to global price volatility. Concerns over late IMF loan dispersals and a weakening rupee amplify fears of sustained inflation, further burdening the population, as reported by Dawn.

(With inputs from agencies.)