ISLAMABAD: In a move that will impact millions of consumers across the country, the government of Pakistan has declared a substantial increase in the prices of petrol and diesel, effective from March 7, 2026. This decision comes as a direct response to the sharp rise in international oil prices, which have surged amid growing geopolitical tensions in the Middle East. The announcement was made during a press conference held in the federal capital, where senior government officials outlined the new fuel rates and the rationale behind the hike.
Under the revised pricing structure, the cost of petrol will rise by Rs. 55 per litre, bringing the new retail price to Rs. 321.17. Similarly, diesel prices will see a significant jump from Rs. 275.70 to Rs. 335.86 per litre. These adjustments mark one of the steepest increases in recent years, reflecting the volatility in global energy markets. The government emphasized that this step was unavoidable given the external economic pressures and the need to maintain energy supplies for the country.
Deputy Prime Minister and Foreign Minister Ishaq Dar addressed the media, explaining that the escalation in oil prices is closely linked to the intensifying conflict in the Middle East. He highlighted that the situation worsened following a recent attack on Iran, which has since drawn in neighboring countries such as Turkey and Azerbaijan, further destabilizing the region. This expansion of hostilities over the past 48 hours has caused a ripple effect, pushing crude oil prices to unprecedented levels worldwide, thereby directly affecting Pakistan’s import costs.
Meanwhile, Petroleum Minister Ali Pervaiz Malik, who was also present at the briefing, described the price hike as a difficult but necessary decision. He acknowledged the challenges faced by ordinary citizens but stressed that the government’s priority remains to secure the nation’s energy requirements amid these turbulent times. Malik assured that efforts are underway to mitigate the impact on consumers as much as possible, while also safeguarding the country’s economic stability.
It is worth noting that the International Monetary Fund (IMF) has been pressing Pakistan to adjust fuel prices in line with global market trends. During recent virtual discussions between Pakistani officials and an IMF delegation, the fund urged immediate increases in petrol and diesel rates to help stabilize the country’s fiscal position. This external pressure adds another layer of complexity to the government’s decision-making process, balancing economic demands with public sentiment.
As the new prices come into effect, the general public and various sectors of the economy are expected to feel the repercussions, particularly in transportation and logistics, which rely heavily on fuel. Analysts warn that this could lead to a broader inflationary impact, affecting the cost of goods and services nationwide. The government, however, remains committed to navigating these challenges while seeking long-term solutions to Pakistan’s energy dependency and economic vulnerabilities.
