The government has increased domestic fuel prices by Rs. 55 per litre, pushing petrol (MS) to Rs. 321.17 per litre and high-speed diesel (HSD) to Rs. 335.86 per litre, amid a sharp rise in international oil prices and escalating tensions in the Middle East.
Data compiled by Arif Habib Limited shows that the ex-refinery price of petrol rose by Rs. 36.29 per litre, while the petroleum levy increased by Rs. 20.97 to Rs. 105.37 per litre.
For diesel, the ex-refinery price surged Rs. 78.24 per litre, although the petroleum levy was reduced by Rs. 20.97 to Rs. 55.24 per litre, keeping the overall price increase for both fuels at Rs. 55 per litre.
The price adjustment comes as global oil markets face disruptions following the conflict involving Iran, Israel, and the United States, which 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 insurance premiums for tankers operating in the region.
The crisis has also disrupted traffic through the Strait of Hormuz, a key global energy corridor through which roughly 20 percent of the world’s oil supply passes, raising 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 surged dramatically while insurance premiums for tankers have also increased several-fold 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.
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