The federal government has announced a fresh increase in petroleum prices, raising the cost of both petrol and high-speed diesel for the next 15 days. The decision, notified by the Petroleum Division on Sunday, comes amid escalating geopolitical tensions in the Middle East that have unsettled global commodity markets.
According to the official notification, the price of high-speed diesel (HSD) has been increased by Rs5.16 per litre, while petrol prices have been raised by Rs8 per litre. The revised rates took effect from March 1, 2026, and will remain applicable for the upcoming fortnight.
Following the latest revision, high-speed diesel is now priced at Rs280.86 per litre, compared to the previous rate of Rs275.70 per litre. Meanwhile, the price of petrol (motor spirit) has been fixed at Rs266.17 per litre for the next 15 days.
The price adjustment was made on the recommendations of the Oil and Gas Regulatory Authority (OGRA), which reviews global oil price trends and exchange rate fluctuations before proposing changes in domestic petroleum rates. The government conducts these reviews twice a month to align local fuel prices with international market conditions.
Officials said the increase was primarily driven by a sharp spike in global oil prices after rising tensions in the Middle East. Commodity markets reacted strongly after the United States and Israel reportedly launched a joint military action against Iran on Saturday. The development triggered concerns over potential disruptions in global oil supply routes, particularly in a region that plays a critical role in international energy markets.
Analysts warn that continued instability in the region could keep international crude prices elevated in the coming weeks. If tensions persist or escalate further, Pakistan may face additional pressure on domestic petroleum prices during the next review cycle.
The increase in fuel prices is expected to have a cascading impact on the broader economy. High-speed diesel is widely used in the transportation and agriculture sectors, including for trucks, buses, tractors, and other heavy machinery. An increase in diesel prices often leads to higher freight charges, which can eventually translate into increased prices of essential commodities across the country.
Similarly, a rise in petrol prices directly affects private vehicle owners and commuters, increasing daily travel expenses. Public transport fares may also witness adjustments as operators pass on the additional fuel cost to passengers.
Economists note that fuel price hikes also contribute to inflationary pressures. Higher transportation and production costs can impact supply chains, leading to a rise in the prices of food items and other consumer goods. With inflation already a concern for many households, the latest increase is likely to add further strain on domestic budgets.
The Petroleum Division clarified in its notification that the revised prices will remain in force for 15 days. After this period, the government will review market conditions again before announcing any further changes. The biweekly pricing mechanism is aimed at maintaining transparency and ensuring that domestic rates reflect global oil price movements.
Market observers will now be closely watching developments in the Middle East, as any further escalation could have direct implications for international crude markets and, by extension, Pakistan’s fuel pricing structure.
For now, consumers across the country will have to adjust to higher petrol and diesel prices, at least until the next official review.
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