Pakistan’s current petrol price stands at Rs 321.17 per litre and high-speed diesel at Rs 335.86 per litre following unprecedented volatility triggered by Middle East geopolitical tensions.
The federal government decided to keep petrol and diesel prices unchanged for the week starting March 21, despite sharp rise in international oil prices, absorbing increased costs through government subsidies to shield consumers from further price shocks.
These rates represent Pakistan’s highest fuel prices in 2026 after a historic single-day increase of Rs55 per litre on March 7, driven by regional conflicts disrupting global oil supply chains.
Current Fuel Prices March 2026
Prices apply uniformly across all major oil marketing companies including PSO, Shell, Total PARCO, Attock, Hascol, GO, and Byco.
Petrol Price Today
The petrol price in Pakistan today is Rs 321.17 per litre as per the latest OGRA notification effective from March 7, 2026.
Petrol, also known as Motor Spirit (MS) with 92 RON rating, powers private vehicles, motorcycles, rickshaws, and light commercial transport. Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts budgets of middle and lower-middle classes.
The current rate represents a Rs 55 increase from Rs 266.17 on March 1, and Rs 68 increase from Rs 253.17 on January 1, 2026.
Diesel Price Today
High-speed diesel (HSD) is priced at Rs 335.86 per litre.
Most of the transport sector runs on HSD, powering trucks, buses, agricultural machinery, tractors, and industrial generators. Diesel price movements directly affect transportation costs, food prices, and overall inflation.
Other Petroleum Products:
- Light Diesel Oil (LDO): Rs 159.76 per litre
- Kerosene Oil: Rs 358.81 per litre (increased Rs 40)
- LPG: Rs 225.84 per kg
Historic Price Increase
March 7 Surge
The March 7 revision was the most significant single-day fuel price adjustment in Pakistan’s history — both petrol and diesel were increased by Rs 55 per litre.
The petrol and diesel price hike was decided in a high-level government meeting chaired by Deputy Prime Minister Ishaq Dar, with meeting including Federal Minister for Petroleum Ali Pervaiz Malik along with senior cabinet members.
Authorities stated that the decision was taken in response to rising international oil prices and regional geopolitical tensions affecting import costs and supply chain stability.
Middle East Crisis Impact
The government attributed this to the Middle East geopolitical crisis and the disruption of shipping lanes through the Strait of Hormuz, causing Brent crude to surge 50-70% in under two months.
Reports of attacks involving Iran and closure of Strait of Hormuz, a critical global oil shipping route, disrupted petroleum supply chains, with international crude oil prices reportedly jumping between 50% and 70% in early March 2026.
March 2026 saw crude surge from $75 to $130 per barrel, directly translating into domestic price pressure. Global oil markets have remained volatile in March 2026, with Brent crude trading above $100–110 per barrel due to supply concerns.
Pricing Mechanism
Petroleum pricing in Pakistan follows a structured formula managed by OGRA under federal government oversight.
OGRA’s Role
The Oil and Gas Regulatory Authority (OGRA) reviews and recommends prices, while the government makes the final decision.
OGRA was established under the OGRA Ordinance 2002 to regulate Pakistan’s petroleum sector, with responsibilities including recommending prices to government, licensing OMCs and LPG distributors, ensuring quality at retail outlets, and protecting consumers.
OGRA uses the Arab Gulf import parity benchmark for the ex-refinery price, converting it at the prevailing USD/PKR exchange rate.
Weekly Review System
Due to extreme volatility in global energy markets, the government has moved from the traditional fortnightly price adjustment to weekly reviews, allowing authorities to respond faster to changes in international oil prices.
Prices revised on the 1st and 16th of each month was standard for over a decade, giving consumers 15 days of price certainty.
Shifted due to extreme global volatility for faster market response, but consumers face more frequent changes.
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Government Intervention
Price Differential Subsidies
The government will absorb the increase in global prices, which stood at Rs 176.41 per litre for HSD and Rs 77.98 per litre for petrol, by compensating oil marketing companies through price differential payments.
The federal government released Rs 27 billion to OGRA to clear outstanding price differential claims and shield general population from another fuel price hike, with amount constituting first tranche from Prime Minister’s Austerity Fund.
Funds were generated through expenditure cuts and savings across various federal departments under recent austerity measures, with these savings pooled into PM’s fund to support targeted relief efforts.
Earlier, the government had allocated Rs 23 billion in price differential claims to OMCs to cushion impact of rising oil prices, with funding supported through austerity measures.
Petroleum Levy Structure
Levy on petrol was raised from Rs 84.40 per litre to Rs 105.37 on March 1, 2026.
For high-speed diesel, levy was reduced from Rs 76.21 to Rs 55.24 per litre on March 7, even as ex-depot price increased to Rs 335.86 per litre.
ECC authorized Petroleum and Finance Divisions to make adjustments — with approval of prime minister — in rate of petroleum levy on petroleum products, up to maximum of Rs 90 per litre, to ensure timely fortnightly revisions in petroleum prices.
Taxation and Components
The pump price is the sum of six components, each contributing a specific percentage to the final rate consumers pay at retail stations.
Petroleum Development Levy
PDL (Rs 70) + GST (Rs 18) = 28% of pump price, often increased under IMF programs, absorbing any crude relief.
Government recovered about Rs 1.161 trillion through petroleum levy alone in FY2025 and expects this to jump by about 27% to Rs 1.470 trillion during current fiscal year.
Petroleum levy changes are tied to Pakistan’s commitment to International Monetary Fund to strengthen non-tax revenue, with government having set petroleum levy target of about Rs1.47 trillion for fiscal year.
GST and Other Charges
GST on petrol remains at zero, though proposals exist to introduce 3-5% GST on petroleum products.
Applying the standard 18 percent GST would result in a price increase of approximately Rs45 per litre for MS and HSD, which government considers undesirable.
Price components include:
- Ex-refinery/import price
- Petroleum Development Levy
- Dealer margins
- OMC margins
- Inland freight equalization margin (IFEM)
- Distribution and handling costs
Economic Impact
The announcement of significant hike in petrol and diesel prices is expected to generate strong public reaction, with industry sources arguing that the hike will further strain household budgets, transportation fares and commodity prices in country.
Economists warn the increase could also push inflation and food prices higher in coming weeks due to rising transportation costs.
Sharp increase has intensified cost of living, with residents reporting higher transport fares and rising prices of daily-use items, including fruits, vegetables pushing up costs, with transport cost increasing from Rs 1,000 per trip to between Rs 2,500 and Rs 3,000, while drivers providing pick-and-drop services for schoolchildren have also raised fares.
Pakistan’s heavy dependence on imported oil (about 81% of requirements) makes the economy vulnerable to global price shocks. Pakistan pays for oil in dollars, with each Rs1 depreciation causing Rs0.60-0.80/L increase even if crude stays flat.
Digital Tracking System
OGRA introduced a digital track-and-trace system for petroleum products to strengthen oversight of fuel supply chain as Pakistan faces market pressures linked to global oil disruptions, with platform integrating key functions including import and export management, stock reporting, sales tracking and dispatch monitoring, with real-time connectivity across refineries, depots and retail outlets to track fuel movement nationwide.
More than 200 participants attended the session, while additional stakeholders joined virtually, with technical teams providing demonstrations on modules covering refinery operations, oil marketing dashboards, stock management and transit tracking.
Officials said the digital system will support regulatory oversight and improve decision-making through real-time data availability, while authorities have been conducting daily reviews of fuel procurement, logistics and supply channels to ensure stability in domestic availability as global market conditions remain uncertain.