Pakistan is grappling with one of its most significant fuel price shocks in decades, primarily driven by a spike in global oil prices linked to the Iran conflict. Prime Minister Shehbaz Sharif reported that the country's oil import bill has escalated from approximately $300 million to nearly $800 million. This sharp increase is adversely affecting everyday life, as rising fuel costs lead to higher transportation and food prices, making it difficult for citizens to manage their daily expenses. Diesel, which powers much of the transport and agricultural sectors, is particularly affected, creating a ripple effect throughout the economy. Economists warn that this chain reaction will likely result in increased inflation and reduced consumer spending. In response, the State Bank of Pakistan has raised its interest rate to 11.5% to mitigate the risks associated with rising energy costs and economic uncertainty. The situation has sparked public protests in cities like Lahore, where transport workers are voicing their frustrations over the escalating costs. The government now faces a challenging decision: either absorb the higher costs, risking public discontent, or implement subsidies that could strain its already tight fiscal situation, especially under the conditions set by the International Monetary Fund (IMF). As this global crisis becomes a domestic issue, the economic strain could escalate into a political challenge if prices continue to climb.