ISLAMABAD – In a significant late-night move that is set to impact millions across the country, the federal government has announced a massive increase in the prices of petroleum products. Effective from midnight, March 7, 2026, the prices of petrol and high-speed diesel (HSD) have been hiked by Rs 55 per litre each.
The decision comes amid a volatile global energy market and heightened regional tensions, particularly in the Middle East, which have driven international crude oil prices to record levels.
New Fuel Prices at a Glance
Following the latest notification, the updated rates for the country are as follows:
| Fuel Type | Old Price (PKR) | New Price (PKR) | Change (PKR) |
|---|---|---|---|
| Petrol (Motor Spirit) | Rs 266.17 | Rs 321.17 | + Rs 55.00 |
| High-Speed Diesel (HSD) | Rs 280.86 | Rs 335.86 | + Rs 55.00 |
Why the Sudden Spike?
During a joint press briefing, Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, and Petroleum Minister Ali Pervaiz Malik cited “extraordinary circumstances” as the primary reason for the hike. Key factors include:
- Global Oil Surge: Global petrol prices jumped from approximately $78 per barrel to over $106 per barrel in just the first week of March. Diesel saw an even steeper climb, reaching nearly $150 per barrel.
- Regional Instability: Ongoing conflicts in the Middle East and threats to the Strait of Hormuz have created supply chain panic, forcing many nations to adjust domestic prices to match import costs.
- Shift to Weekly Reviews: In a major policy shift, the government has moved away from the traditional fortnightly review system. Prices will now be adjusted weekly to ensure the economy can react faster to global market fluctuations.
Government Response to Inflation Fears
Finance Minister Muhammad Aurangzeb acknowledged the difficulty of the decision, noting its potential impact on inflation.
“The government has been monitoring the situation daily. While this is a tough decision, it is necessary to maintain energy security and fulfill international commitments, including those with the IMF, which has urged the passing on of rising costs to consumers.”
In tandem with the price hike, Prime Minister Shehbaz Sharif has ordered a nationwide crackdown on fuel hoarding. District administrations have been directed to ensure that petrol pumps remain operational and that artificial shortages are not created to exploit the new rates.
Looking Ahead
With the new weekly adjustment mechanism in place, consumers should brace for more frequent changes at the pump. The government has assured the public that if global oil prices retreat, the benefit will be passed on to the citizens immediately.
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