Fuel Prices Hiked Amid Global Oil Price Changes

ISLAMABAD: According to GTV News, the Pakistani federal government has announced a rise in the cost of petroleum products. Petrol prices have increased by Rs5 per litre, while high-speed diesel has seen an increase of Rs7.32 per litre. The Petroleum Division stated that these updated prices take effect immediately, noting that the decision was reached after examining domestic fuel patterns, international oil prices, and Pakistan’s general market conditions.

Under the new pricing structure, high-speed diesel (HSD) now costs Rs275.70 per litre, while petrol is priced at Rs258.17 per litre. The Petroleum Division clarified that the primary causes for the hike were fluctuations in global oil prices, local supply challenges, and growing demand. Authorities emphasized that fuel prices are periodically evaluated to strike a balance between consumer needs and national budgetary constraints, with any upcoming changes to be disclosed following the next scheduled fortnightly review.

Prior to this February 16, 2026, revision, it was anticipated that the price of petroleum products could rise by as much as Rs6.55 per litre. Specifically, diesel was predicted to climb by Rs5.40 and petrol by Rs4.39, while light diesel oil and kerosene were expected to see increases of Rs6.55 and Rs4 per litre, respectively. Following the completion of the preliminary revision process, the Oil and Gas Regulatory Authority (OGRA) submitted these recommendations to the Petroleum Division for formal announcement after receiving approval from Prime Minister Shehbaz Sharif.

In a broader fiscal context, Pakistan provided the International Monetary Fund (IMF) with its estimates for petroleum development levy collections for the next five years on December 18, 2025. The submitted documents indicate that a climate assistance charge of Rs2.5 per litre will also be implemented starting July 1, 2026. The IMF report includes year-over-year estimates showing that collections are expected to reach Rs1,468 billion for the current fiscal year and rise steadily to Rs2,212 billion by the 2029–2030 period.

Historical data provided in the report shows a significant upward trend in levy receipts, which grew from Rs580 billion in 2022–23 to Rs1,220 billion in the preceding fiscal year. Currently, petrol is subject to a levy of Rs79.62 per litre, while high-speed diesel is subject to a duty of Rs75.41 per litre. Both fuels will eventually be subject to the separate Rs2.5 per litre climate support levy as part of the government’s long-term revenue strategy.