Fuel price hike adds to Ramazan inflation burden

• Public anger grows over timing, scale of increase in petrol, diesel rates• Daily-wage earners, gig workers take the brunt• Transport fares surge; vegetable and fruit prices jump within hours• Transporters say fare hike unavoidable• Fuel use drops as people cut travel

LAHORE / PESHA­WAR / KARACHI: The sharp Rs55 per litre increase in fuel prices is sending ripple effects across the country, raising transportation costs, driving up food prices and putting additional burden on households already grappling with traditional inflation during the holy month of Ramazan.

“It was the last thing Pakistanis needed and the government delivered it mercilessly,” said one of the several respondents from different social strata whom Dawn spoke to on Wednesday.

“Life itself is beginning to bite now, as making both ends meet has become an almost impossible struggle,” he added.

The resentment is not limited to consumers. Traders and professionals say the government’s handling of the increase has deepened public frustration.

“The manner of the hike was even cruel,” said Anees Ahmad Khan, a trader from Lahore. “In the morning, federal ministers were saying Pakistan was safe for now as it had around a month’s stock, meaning international prices would not affect consumers immediately,” he said.

Economists say the impact of higher fuel prices rarely remains confined to petrol pumps and quickly spreads across the economy.

“Conventional economics tells us that oil price hikes trigger a chain reaction across the economy,” Prof Kamran Butt said.

“They increase transportation costs, push up the prices of daily-use commodities and food items, raise the overall cost of living, reduce purchasing power, increase poverty and unemployment, slow economic activity and eventually fuel public discontent as quality of life deteriorates,” he explained.

“One wonders what the government seeks to achieve through such social cruelty. If IMF conditionalities are the only reason, then the condition of Pakistanis should also have been factored in,” he said.

Particularly for daily wage earners and gig workers, the economic theory translates into an immediate hit to already fragile incomes.

“In 12 hours of work a day, I hardly make Rs1,000 delivering food to households,” said Muhammad Ramzan, a motorcyclist working for an international food chain. “My daily petrol consumption is about three litres, which means the recent increase will cost me another Rs165, which is about 16.5 per cent of my daily income when I actually manage to earn Rs1,000, which itself is occasional.”

The ripple effects are already visible in local markets, where traders say prices adjust within hours of any fuel increase.

“The first and most immediate pressure of petrol price hikes is felt in fruit and vegetable markets, where prices increase within hours,” said Muhammad Idrees, a vegetable vendor at Ravi Road Market, the city’s largest wholesale market.

“The oil price announcement came late in the evening, and prices in the market were up by 20pc to 25pc by early morning. Perishable daily-use items suffer first. Vegetable sales are sustaining, but fruit sales have already taken a dip,” he said.

The transport sector, heavily dependent on fuel, is also bracing for the fallout.

“People are right when they complain about transportation costs,” said Nasir Iqbal, a cab driver who has been working with an app-based transport company for the last 10 years.

“During this period, fares have multiplied many times due to rising fuel prices and higher operating costs. Each increase reduces the number of commuters while raising the cost of doing business. This latest hike will be no exception as it will increase fares by at least 15pc to 20pc and further reduce the number of passengers.”

Fare hikes in Karachi

In Karachi, the increase in petroleum prices has pushed up transport fares across several modes of travel, putting further pressure on already strained household budgets.

Passengers using Qingqi rickshaws, minibuses, coaches and ride-hailing services reported noticeable fare increases, with many commuters changing their usual mode of transport to manage daily expenses.

An elderly commuter told Dawn that he travelled to work by changing two buses daily and that transport operators had raised fares by Rs10 to Rs30 after the diesel price hike.

“The increase has disturbed my monthly budget,” he said. “Now I travel by one bus up to Numaish and then request lifts from people to reach my office.”

Passengers using Qingqi rickshaws and buses said the fare for a single stop had increased from Rs20 to Rs30. Some commuters said objections over higher fares often led to arguments with drivers or conductors, with passengers occasionally being asked to get off the vehicle.

Another resident said taking his brother-in-law twice a week for dialysis at the Indus Hospital had become significantly more expensive. “Earlier, the round trip used to cost around Rs3,000, but now the expense has risen to between Rs4,000 and Rs4,500 because transport fares have gone up,” he said.

A young motorcyclist said his daily petrol expense for commuting had increased from about Rs350 to between Rs400 and Rs450.

A woman waiting for a rickshaw outside a shopping mall near Hyderi Market said the fare to her home had risen from Rs200 to around Rs300.

Transport operators, however, said the fare increases were unavoidable. “Fuel is our biggest expense. When its price increases, our operating costs also rise,” a bus conductor told Dawn. “We have no option but to increase fares because we cannot absorb the extra cost ourselves.”

Car and bike drivers working with ride-hailing platforms said the hike had also affected demand, with more commuters opting for buses instead of app-based services.

Flour price jumps in Peshawar

In Peshawar, the petrol and diesel price hike has pushed up commodity prices and inter-city travel costs, while petroleum dealers report a noticeable decline in fuel sales.

Businessmen and residents say the impact of the hike is already visible in the prices of essential goods and transport fares.

Haji Waheed, president of the KP Grain Dealers Association, told Dawn that the price of a 20kg bag of flour had increased by Rs50 to Rs100 across the province.

“A bag that earlier cost Rs2,550 is now selling for Rs2,650 to Rs2,700,” he said, adding that higher fuel prices had raised transportation and milling costs across the supply chain.

He noted that flour dealers in KP were already facing difficulties due to restrictions on the transportation of flour from Punjab, which had pushed prices higher in the province. He said that while a 20kg bag sells for about Rs1,800 in Punjab, it costs over Rs2,500 in KP due to the transport ban.

Mr Waheed added that controlling food prices through official price lists was difficult because market forces ultimately determine commodity prices.

Transporters say they have also been forced to revise fares. Khan Zaman Afridi, president of the KP Transport Owners Association, told Dawn fares for inter-city travel had been increased soon after the fuel price hike.

“Transporters could not absorb such a massive increase in fuel prices,” he said. The fare for Lahore has risen from Rs2,000 to Rs3,000, while the Karachi fare has increased from Rs3,000 to Rs5,000.

He said fares for the Peshawar-Islamabad and inter-district routes had not yet been revised, but a meeting of transporters was scheduled on Thursday to decide them.

Petroleum dealers say the sharp price increase has also reduced fuel consumption. Najeebullah, spokesperson for the Petroleum Dealers and Cartage Contractors Association KP, said sales at one of his fuel stations had fallen from about 8,000 litres to 3,000 litres per day after the price hike.

Published in Dawn, March 12th, 2026