By Farooq Awan

A sharp increase in fuel and transport costs emerged as one of the key contributors to inflation in April 2026, with transport prices rising significantly on both a monthly and yearly basis.

According to the “Monthly Review on Price Indices April 2026” released by the Pakistan Bureau of Statistics and available with Wealth Pakistan, the transport group recorded a year-on-year increase of 29.88% at the national level, making it one of the largest contributors to overall inflation.

The data shows that transport costs also registered a strong month-on-month rise of 15.47% in April, reflecting a rapid escalation in prices within a short period. The increase aligns with notable changes in fuel-related components included in the CPI basket.

At the urban level, transport costs surged by 32.15% year-on-year, while on a monthly basis, they increased by 17.04%. In rural areas, the transport index rose by 26.29% year-on-year and 12.96% month-on-month, indicating that the upward trend in transport costs was widespread across regions.

The report highlights that motor fuel and transport services were among the key contributors to this increase. Motor fuel prices rose by 40.21% on a year-on-year basis in urban areas, while transport services increased by 37.65% over the same period. On a monthly basis, motor fuel recorded an increase of 18.22%, while transport services surged by 27.86%.

In addition to fuel, other related components also showed upward movement. Mechanical services increased by 7.24% year-on-year, while motor vehicle accessories rose by 3.76%, contributing to the overall rise in transport-related costs.

The broader non-food category shows similar patterns, largely reflecting the pass-through effects of energy-related costs. Liquefied hydrocarbons recorded a substantial increase of 63.36% year-on-year in urban areas, while gas charges rose by 22.91% and electricity charges increased by 33.71%, indicating a wider rise in energy-related expenses.

Month-on-month data further supports this trend. Liquefied hydrocarbons increased by 38.34%, while motor fuel rose by 18.22% during April. Transport services also registered a strong monthly increase of 27.86%, highlighting the pace at which energy-driven costs are feeding into consumer prices.

At the wholesale level, fuel-related items also showed significant increases. Diesel oil rose by 92.93% year-on-year, motor spirit by 48.58%, and kerosene oil by 154.87%, according to the Wholesale Price Index data. These increases point to rising input costs that may continue to influence consumer prices in subsequent months.

The data indicate that energy and fuel costs played a central role in pushing overall inflation higher during April 2026. The sharp increases across transport, fuel, and related services highlight the extent to which these components are contributing to broader price movements in the economy, as reflected in the official statistics.

Credit: INP-WealthPk