The federal government has raised petrol and diesel prices effective March 1, 2026, amid sharp increases in global oil markets triggered by the ongoing military conflict in the Middle East.
Islamabad – The Petroleum Division issued a notification on Saturday announcing an increase in fuel prices for the next 15 days. Petrol (motor spirit) now costs Rs266.17 per litre, up Rs8 from the previous rate of Rs258.17. High-speed diesel (HSD) has risen by Rs5.16 to Rs280.86 per litre from Rs275.70.
The adjustment follows recommendations from the Oil and Gas Regulatory Authority (OGRA) and takes effect immediately. These rates will apply until mid-March, when the government will review them again based on international crude oil trends and local factors.
The timing aligns with a major escalation in the Middle East. On February 28, 2026, the United States and Israel carried out large-scale strikes on Iran, resulting in the death of Supreme Leader Ayatollah Ali Khamenei and targeting military sites, defense systems, and command centers. Iran responded with missile attacks on Israel and U.S. assets in the region, heightening fears of broader disruption to oil supplies.
Global crude prices have climbed in response, adding a risk premium due to concerns over potential interference in key shipping routes like the Strait of Hormuz. Pakistan, which imports most of its petroleum products, directly feels the impact of these fluctuations.
The latest hike affects everyday life in several ways:
- Transport costs — Higher petrol prices hit private vehicles, motorcycles, rickshaws, and ride-hailing services, likely leading to increased fares for commuters.
- Goods movement — Diesel increases raise expenses for trucks and public transport, which could push up prices for food, groceries, and other essentials.
- Agriculture and industry — Farmers using diesel-powered machinery and industries reliant on fuel face added strain.
No immediate official comment came from the Finance Ministry or Petroleum Division on the link to the Iran conflict, but market observers note that international oil benchmarks rose about 3% in recent days amid the regional unrest.
The government typically reviews fuel prices every fortnight to pass on or absorb changes in global rates, taxes, and freight costs. This marks another upward revision in recent months.
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Consumers should expect possible knock-on effects, such as adjustments in public transport fares and commodity prices in the coming days. Authorities have not announced any relief measures yet.
