The company said the price of a 19-kg commercial LPG cylinder used by industrial consumers was increased by 993 rupees, or 47.8%, to 3,071.5 rupees from previous levels.Aviation turbine fuel prices for international airlines were also raised by $76.55 per kilolitre to $1,511.86 per kilolitre, up from $1,435.31, according to a company statement.

Prices of household LPG, primarily used as cooking fuel, were left unchanged, while jet fuel rates for domestic airlines were also not revised.The selective increase reflects the government’s continued effort to shield households and domestic carriers from sharp energy inflation while allowing market-linked pricing for industrial and international commercial users.

The revisions come as global oil prices have climbed above $100 per barrel after the closure of the Strait of Hormuz, a critical global shipping route for crude exports, amid the ongoing Iran war and heightened military tensions in the Gulf.

The disruption has tightened supply expectations across global energy markets and increased input costs for refiners and fuel distributors across Asia, particularly for countries such as India that depend heavily on imported crude.

India imports more than 80% of its crude oil needs, making domestic fuel pricing highly sensitive to geopolitical shocks in major producing regions such as West Asia.

The increase in commercial LPG prices is expected to affect hotels, restaurants and small industrial users, while higher aviation turbine fuel costs for foreign carriers could raise operational expenses for international flights using Indian refueling hubs.

Indian Oil did not indicate whether further revisions would follow if crude prices remain elevated.

A 23-year-old rider, Mohammad Mohsin, said his daily earnings have fallen from around 1,500 rupees ($5.38) to about 1,100 rupees as petrol prices climbed above 320 rupees per litre. “Before it was all mine. Now, a huge sum goes into petrol,” he said.

The spike in fuel prices is hitting low-paid urban workers particularly hard, with many riders struggling to cover basic expenses, let alone seasonal spending associated with Eid. Reuters spoke to more than half a dozen riders across Karachi, all of whom said higher petrol costs had significantly reduced their take-home earnings.

The squeeze comes despite increased demand for deliveries during Ramadan evenings and the Eid period, when food orders typically surge.

Pakistan’s inflation rate, which peaked at 38% in 2023, has eased but remains elevated at around 7%, continuing to push up the cost of food, rent and utilities. Many gig workers earn below the monthly minimum wage of 32,000 rupees ($114.67), with no fixed salaries or employment benefits.

Riders said the combined impact of inflation and fuel costs has eroded their purchasing power, forcing them to prioritise essentials over customary holiday spending.

Companies reliant on gig workers, including foodpanda, say they are adjusting pricing and taking steps to support rider earnings.

However, workers say these measures have not kept pace with rising costs, leaving them to compensate by spending more hours on the road.

Austerity measures, school closures and increased work-from-home practices have also reduced ride-hailing demand, cutting into incomes even as delivery volumes rise.

“We cannot afford clothes or shoes,” said Hizbullah, a 26-year-old delivery rider, reflecting a broader sentiment among workers that a typically festive period has become financially strained.