The government has raised domestic fuel prices by Rs. 55 per litre, pushing petrol to Rs. 321.17 per litre and high-speed diesel to Rs. 335.86 per litre. This decision comes amid a sharp rise in international oil prices and escalating tensions in the Middle East.
Data compiled by Arif Habib Limited reveals that the ex-refinery price of petrol increased by Rs. 36.29 per litre, while the petroleum levy rose by Rs. 20.97 to Rs. 105.37 per litre. For diesel, the ex-refinery price surged by Rs. 78.24 per litre, though the petroleum levy was reduced by Rs. 20.97 to Rs. 55.24 per litre. Despite these adjustments, the overall price increase for both fuels remains at Rs. 55 per litre.
The price adjustment follows disruptions in global oil markets caused by the conflict involving Iran, Israel, and the United States. This has triggered a surge in crude prices and shipping costs. Brent crude has climbed above $90 per barrel, while freight rates for oil shipments have surged sharply due to security risks and increased insurance premiums for tankers operating in the region.
The crisis has also disrupted traffic through the Strait of Hormuz, a critical global energy corridor through which roughly 20 percent of the world’s oil supply passes. This has raised concerns about supply disruptions and higher import costs for oil-dependent economies such as Pakistan. Industry reports indicate that shipping costs for oil cargoes have increased dramatically, while insurance premiums for tankers have also risen significantly due to the regional conflict.
Officials say the new prices took effect from March 7, 2026, and further adjustments may depend on developments in global oil markets and the evolving security situation in the Middle East.
