'Fuel shock’: Fuel prices go dearer as petrol, diesel rise Rs26.77 per litre

• Petrol rises to Rs393.35, diesel fixed at Rs380.19 per litre as weekly revision reflects global oil market volatility

• Government cites rising international crude prices amid regional tensions with Strait of Hormuz disruption seen as key pressure factor

 ISLAMABAD: The government on Friday announced an increase of Rs26.77 per litre in the prices of petrol and high-speed diesel (HSD), effective for the week starting April 25.

According to a press release issued by the Petroleum Division, the revised price of petrol now stands at Rs393.35 per litre, while HSD has been fixed at Rs380.19 per litre.

The price of high-speed diesel has increased from Rs353.42 per litre to Rs380.19 per litre, reflecting a 7.5% rise, the statement added.

The government has been revising petroleum prices on a weekly basis every Friday night amid shifting global oil trends following what officials described as the now-paused US-Israeli conflict with Iran, which began on February 28. The situation reportedly triggered a global fuel supply crunch after disruptions linked to the closure of the Strait of Hormuz, through which nearly one-fifth of the world’s oil and gas flows in normal conditions.

In a statement, Petroleum Minister Ali Pervaiz Malik said international oil prices were once again rising due to regional tensions, forcing adjustments in domestic rates.

حکومت نے پیٹرولیم مصنوعات کی عالمی سطح پر قیمتوں میں اضافے کو ہر ممکن حد تک برداشت کیا، وزیر پٹرولیم pic.twitter.com/P7qDG32ReY

— PTV News (@PTVNewsOfficial) April 24, 2026

“Due to the pressure of rising oil prices and agreements with global partners, the government is having to take steps to transfer the burden of increasing oil prices,” he said. He added that while the government had “tolerated” global price hikes as far as possible, the current revision was unavoidable.

The minister also said that provincial and federal governments had previously extended what he termed a “historic relief package” to the public and expressed hope for regional stability.

“I pray that progress is made soon in achieving regional peace and relief can be provided to the people in the prices of petroleum products,” he said.

Following the outbreak of the US-Israeli war on Iran, fuel prices have seen significant volatility. On March 6, the government initially raised petrol and diesel prices by Rs55 per litre and later introduced austerity measures on March 9.

Subsequently, Prime Minister Shehbaz Sharif rejected multiple proposals for further hikes despite rising global prices. However, on April 2, the government announced a sharp increase of 43% in petrol and 55% in diesel prices along with a targeted fuel subsidy programme.

A day later, the prime minister reduced the petroleum levy by Rs80 per litre, bringing petrol down to Rs378 per litre. On April 10, further reductions of Rs135 and Rs12 per litre were announced for diesel and petrol respectively.

Last week, the prime minister approved a Rs32.12 per litre cut in diesel prices, while keeping petrol rates unchanged.

Officials said the International Monetary Fund has urged the government to impose Rs80 per litre tax on petroleum products, with an additional Rs53 per litre adjustment still under consideration. A decision on whether this remaining burden will be placed on petrol or diesel consumers is expected next week.

Currently, the government is collecting about Rs36 per litre tax on diesel, including Rs33 in customs duty and Rs2.5 as climate support levy. Total taxes on petrol stand at Rs134 per litre, including Rs107 petroleum levy, Rs24 customs duty and Rs2.5 climate support levy.

Under IMF understandings, the climate support levy is expected to rise by an additional Rs2.5 per litre on both products from July 1, taking it to Rs5 per litre. The IMF is also expected to approve the fourth loan tranche and complete the third review of the $7 billion bailout programme in the first week of May.

Meanwhile, due to easing global prices, kerosene oil and light diesel oil rates have been reduced. Kerosene has been cut from Rs429 to Rs365 per litre, a decrease of Rs63.6, while light diesel oil has been reduced from Rs299 to Rs270 per litre, down Rs29.