Petrol, diesel prices to increase by Rs55 per litre

March 06, 2026 (MLN): The federal government has increased the prices of petrol and high-speed diesel by Rs55 per litre, taking the price of petrol to Rs321.17 per litre from Rs266.17, while the price of high-speed diesel (HSD) has risen to Rs335.86 per litre from Rs280.86, effective from midnight, March 07, 2026, amid a sharp surge in global oil prices.

Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, and Federal Minister for Petroleum Ali Pervaiz Malik announced the decision during a news briefing late Friday night, stating that the government had been reviewing the situation for the past several days through a committee constituted by Prime Minister Shehbaz Sharif.

Explaining the rationale behind the increase, officials noted that global petroleum prices have surged sharply due to the ongoing conflict between Iran and USA and the closure of the Strait of Hormuz, with petrol prices rising from around $78 per barrel on March 1 to $106.8 per barrel, while diesel prices climbed from about $88 per barrel to nearly $150 per barrel during the same period.

Authorities said many countries had already passed on the full impact of the price spike to consumers.

Finance Minister Aurangzeb said the committee has been closely monitoring daily developments in global energy markets, noting that the economy and energy sector are closely interconnected, requiring the government to assess both short-term and long-term implications, including potential effects on inflation.

He emphasized that Pakistan currently remains in a stable macroeconomic position, adding that there was no panic within the government, though authorities were undertaking scenario planning to prepare for different outcomes if the crisis persists.

The petroleum minister stated that while the global situation remains uncertain and is affecting countries worldwide, Pakistan has completed its preparatory work to ensure continuous crude oil supplies and is not facing an immediate energy crisis.

However, he noted that the government must prudently manage resources and adjust prices in line with international trends.

Officials further said the federal government, on the direction of the prime minister, will engage with provincial governments to share the evolving situation and seek their input regarding demand and supply dynamics.

Earlier, the government had also revised petroleum prices on March 1, 2026, when the price of high-speed diesel was increased by Rs5.16 per litre to Rs280.86 per litre, while the price of petrol was raised by Rs8 per litre to Rs266.17 per litre, according to a notification issued by the Petroleum Division.

The government also stated that  prices will be reviewed on a weekly basis due to the high volatility in global energy markets, while assuring the public that prices would be reduced once international oil prices stabilize and conditions improve.

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