The government of Pakistan has announced its 'highest-ever' increase in fuel prices, raising petrol and high-speed diesel by Rs55 per litre, as the nation feels the first major economic shockwaves from the escalating US-Israel conflict with Iran The move, effective March 7, 2026, comes as surging international crude oil prices approach the psychological barrier of $100 per barrel, driven by fears of supply disruptions through the vital Strait of Hormuz
The price hike was announced in Islamabad by Petroleum Minister Ali Pervaiz Malik, alongside Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb The announcement was made just hours after Prime Minister Shehbaz Sharif and other officials had assured the public of adequate fuel reserves, leading to long queues at petrol stations across the country as citizens rushed to fill their tanks
To manage the fiscal impact, the government has increased the petroleum development levy (PDL) on petrol to Rs105 per litre while reducing it on diesel to Rs57 Minister Malik stated that due to extreme volatility in the global energy markets, petroleum prices will now be reviewed on a weekly basis instead of fortnightly Prime Minister Shehbaz Sharif has also ordered a nationwide crackdown on fuel hoarding to prevent artificial shortages A proposed fuel conservation plan, which included work-from-home and distance learning measures, has been deferred for at least a week
ISN MEDIA
