Pakistan May Review Fuel Prices Weekly as Middle East War Pushes Oil Costs Higher

March 5, 2026: The government of Pakistan is considering a major change in its fuel pricing system. Officials are discussing a plan to review petroleum prices every week instead of every two weeks as tensions in the Middle East continue to affect global oil markets.

The proposal comes as the ongoing conflict involving Israel, United States, and Iran disrupts oil supply routes and pushes international crude prices upward.

Strait of Hormuz Crisis Raises Global Oil Concerns

One major concern is the reported closure of the Strait of Hormuz. This narrow sea route is one of the world’s most important oil shipping channels.

Nearly 20 percent of global oil supplies pass through this route every day. Any disruption in the strait can quickly affect oil markets worldwide.

Energy analysts say the latest tensions have already caused sharp increases in international crude prices. Countries that depend heavily on imported fuel, such as Pakistan, are likely to feel the impact more strongly.

Pakistan Already Increased Fuel Prices Twice

In the past month, the government has already raised petroleum prices twice due to rising global costs.

On March 1, 2026, petrol prices increased by Rs8 per litre, reaching Rs266.17. High-speed diesel (HSD) rose by Rs5.16, bringing the new price to Rs280.86 per litre.

Earlier, on February 16, petrol prices had increased by Rs5, reaching Rs258.17, while HSD rose by Rs7.32 to Rs275.70 per litre.

The current official fuel prices in Pakistan are:

• Petrol: Rs266.17 per litre

• High-Speed Diesel: Rs280.86 per litre

• Light Diesel Oil: Rs167.19 per litre

• Kerosene Oil: Rs188.73 per litre

Weekly Pricing Could Help Manage Market Pressure

Government sources say the idea of weekly price reviews is being studied to respond quickly to global oil fluctuations.

Officials believe that adjusting prices more frequently may help prevent sudden large increases. It could also reduce the risk of fuel shortages and panic buying.

Experts say this approach is already used by several countries that rely on imported oil.

Rising Oil Prices Add Pressure on Pakistan’s Economy

Pakistan imports a large portion of its petroleum products. As global prices rise, the country’s import bill increases significantly.

Economists warn that higher oil costs could worsen inflation and increase transportation and electricity expenses across the country.

The situation is also challenging because Pakistan continues to manage foreign exchange reserves and economic stability.

Government Still Consulting Stakeholders

Officials in Islamabad are currently holding consultations with energy experts, regulators, and industry representatives before making a final decision.

If global oil disruptions continue, the government may soon introduce the weekly petroleum pricing system.

For now, authorities are closely monitoring developments in the Middle East and global energy markets.