Motorcycle riders and online cab drivers face 50–65% jump in operating costs as petrol reaches PKR 415 per litre
Yango Pakistan says that rising fuel prices have increased the per-kilometer vehicle operating cost by nearly 50 percent.
Karachi: After the attacks by the United States and Israel on Iran, the resulting tensions and the closure of the Strait of Hormuz have exposed the world to a new threat. From February to the end of April, nearly 30 percent of the global fuel supply remained disrupted, and even now fuel supplies have not been fully restored due to the American blockade. As a result, fuel prices in the international market surged sharply and still remain at elevated levels. Although the war was taking place in the Middle East, its effects have impacted the entire world, and Pakistan has not remained immune. Like other countries in the region, Pakistan also depends on Gulf countries for fuel supplies, many of which have been disrupted.
A review of local petroleum prices shows that in February, petrol was priced at PKR 253 per liter, which, after fluctuations, climbed to nearly PKR 415 per liter by May. This represents an increase of PKR 162 per liter. Due to this increase, the transportation expenses of people using cars and motorcycles have risen by 50 to 65 percent. Pakistan’s economic challenges have also intensified because of the slowdown caused by the Gulf conflict. Fearing a decline in government revenues, authorities further increased the Petroleum Development Levy and Climate Fund charges collected through fuel prices. As a result, Pakistan became the country with the second-highest fuel price increase after Myanmar.
The sharp rise in fuel prices has not only troubled the general public but has also severely affected online cab drivers and motorcycle riders who earn their livelihood by providing transport services. Their operating costs increased suddenly, while rising inflation also created a need for additional capital to cover daily wages and vehicle maintenance.
To understand the impact of fuel price increases, one can examine the rise in per-kilometer costs for a 70cc motorcycle and a 660cc car. In Pakistan, a 70cc motorcycle typically travels between 55 and 65 kilometers per liter of petrol, although actual fuel efficiency depends on road conditions, traffic, and other factors. A rider purchasing petrol at PKR 253 per liter in February 2026 incurred a cost of around PKR 3.90 to PKR 4.60 per kilometer. However, after the increase in fuel prices by May, the same cost rose to between PKR 6.40 and PKR 7.50 per kilometer. This means the per-kilometer cost increased by PKR 2.50 to PKR 3, reflecting nearly a 60 percent increase within less than four months. If a young delivery rider or bike service provider travels around 50 kilometers daily, their monthly fuel expense alone has increased by approximately PKR 3,500 to PKR 4,500.
Pakistan’s middle class largely uses small cars, particularly 660cc vehicles. Such vehicles generally travel 14 to 18 kilometers per liter. Before the Gulf crisis, the per-kilometer fuel cost was around PKR 14 to PKR 18. Due to higher fuel prices, this cost has now increased to PKR 23 to PKR 30 per kilometer. This reflects an increase of PKR 9 to PKR 12 per kilometer, meaning fuel expenses have risen by 55 to 65 percent. If a 660cc car travels 1,500 kilometers monthly, its monthly fuel expenses have increased by PKR 13,000 to PKR 18,000.
According to a spokesperson for Yango Pakistan, a company providing online taxi and bike services, the increase in fuel prices has also affected the ride-hailing business. Not only have drivers and riders directly associated with ride-hailing services been impacted, but consumers using these services have also suffered. A review of transportation fares in Karachi, Lahore, and the twin cities of Rawalpindi and Islamabad showed that overall fares increased by 19 to 20 percent in Karachi and Lahore, while fares in Islamabad and Rawalpindi rose by up to 35 percent. The longer average travel distances in the twin cities result in higher fuel consumption per ride.
The Yango spokesperson said that fare structures were adjusted in a way that neither service providers nor consumers would face excessive financial burdens. The spokesperson further stated that, apart from fare adjustments, supporting partner drivers remains one of the company’s top priorities. Yango is working on collaborative initiatives aimed at reducing the daily expenses of partner drivers and improving their overall driving experience.
To ease the financial difficulties of partner drivers, partnerships are being developed with various businesses to provide fuel vouchers, discounts on oil and lubricants, savings on medicines and daily necessities, and other essential benefits. Yango is also focusing on the broader social welfare of its partner drivers, including children’s education, parents’ healthcare, and daughters’ marriage expenses. Under this program, high-performing partner drivers are also rewarded with Umrah trips, cars, and motorcycles.
