The government has increased the price of petrol by Rs8 per litre and diesel by Rs5.16 per litre, effective from March 1, 2026. This decision comes amidst rising tensions in the Gulf region that could lead to further hikes in oil prices.
The hike in prices is based on calculations by the Oil and Gas Regulatory Authority (OGRA) as international markets have seen an upward trend. The new prices are set at Rs266.17 per litre for petrol and Rs280.86 per litre for diesel until March 15.
Despite ongoing conflicts in the Middle East, the oil industry has assured the government that Pakistan's stocks of crude oil and petroleum products are sufficient to avoid any immediate supply disruptions, despite the evolving security situation in the Gulf.
The Oil Companies Advisory Committee (OCAC) has confirmed that jet fuel stocks, crucial for civil and military aviation, are being maintained above normal levels, primarily by the Pakistan Air Force and Army Aviation.
The government, following OGRA's recommendations, has raised prices of petroleum products. High-Speed Diesel (HSD) is widely used in the agriculture and transport sectors, and the price hike is expected to contribute to inflation.
Petrol is in high demand for motorbikes and cars, especially with the increased consumption resulting from the ban on indigenous gas in the CNG sector, particularly in Punjab.
In February 2026, oil marketing companies (OMCs) reported combined sales of over one million tonnes of petrol and diesel. Petrol sales reached 588,000 metric tonnes, while diesel sales amounted to 476,000 metric tonnes during the month.
Daily sales volumes were at 21,000 metric tonnes for petrol and 17,000 metric tonnes for High-Speed Diesel. In January 2026, petrol sales were at 641,000 tonnes, showing a 3% increase year-on-year and a 2% increase month-on-month.
High-Speed Diesel sales in January reached 664,000 tonnes, marking an 11% annual increase and a 20% monthly rise due to improved freight and agricultural demand.
Industry analysts attribute the increase in petroleum sales to lower fuel prices and a post-strike recovery, with January 2026 sales touching 1.52 million tonnes, up 10% year-on-year and 12% month-on-month.
Car production records in recent months have further fueled demand for petrol, contributing to the growth in petroleum product sales in Pakistan. Cumulative sales during July to January FY26 reached 9.7 million tonnes, up 3% from the same period last year's 9.4 million tonnes.
