The government on Thursday announced a sharp increase in petroleum prices, pushing petrol to Rs458.40 per litre and diesel to Rs520.35, while unveiling a targeted subsidy for motorcyclists to cushion the impact.

At a joint press conference, Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik said petrol prices had been raised by Rs137.23 per litre, while diesel saw a larger increase of Rs184 per litre.

Officials attributed the hike to unprecedented volatility in global energy markets and mounting economic pressures.

Aurangzeb said a committee formed on the prime minister’s directive had been reviewing prices over the past four weeks before approving the increase.

To provide relief to lower-income groups, the government announced a three-month subsidy of Rs100 per litre for motorcyclists. The measure aims to ease the burden on daily commuters amid soaring fuel costs.

Petroleum Minister Malik said the government was compelled to take “difficult but responsible decisions” in the current circumstances. He noted that crude oil and diesel prices had risen to record levels internationally, leaving limited room for domestic adjustment.

He added that the government had already extended Rs129 billion in subsidies but was now shifting from broad-based relief to targeted support for vulnerable segments.

Malik said austerity measures were also being implemented, including restricting the use of official vehicles, to manage fiscal challenges.

He stressed the need for national unity, adding that all decisions were being taken in the country’s broader interest.