Pakistan Raises Petrol and Diesel Prices Amid Crude Oil Surge

The Government of Pakistan implemented a series of fuel price hikes starting July 11, 2026, driven by rising global crude oil rates and fiscal requirements. Petrol prices increased by Rs 13.18 per litre to Rs 310.71, while high-speed diesel rose by Rs 13.80 to Rs 323.30. To support the national exchequer, authorities raised the petroleum levy on petrol by Rs 9.64, bringing it to a budgeted ceiling of Rs 80 per litre, which is expected to generate approximately Rs 192.8 million daily.

These adjustments follow a surge in Brent crude from $72 to nearly $76 per barrel, triggered by geopolitical tensions between the United States and Iran. On July 12, the government further increased jet fuel prices by PKR 13.23 to PKR 251.02 per litre, a move expected to raise operating costs for Pakistan International Airlines and private carriers. Kerosene oil pricing saw volatility, initially rising by Rs 11.19 to Rs 242.33 before being reduced by PKR 6.85 to PKR 227.05 on July 12.

To address long-term volatility and satisfy International Monetary Fund commitments, the Ministry of Finance established a Petroleum Prices Stabilisation Fund. Additionally, the government restructured fuel taxes on July 1, including doubling the climate support levy to PKR 5 per litre. The International Energy Agency warned that continued U.S.-Iran tensions could further disrupt global oil supply surpluses despite a recent ceasefire and the reopening of the Strait of Hormuz.