Pakistan Raises Fuel Prices Amid Strait of Hormuz Closure

The Government of Pakistan increased petrol and diesel prices by Rs 55 per litre on March 6, 2026, raising petrol to Rs 321.17 and diesel to Rs 335.86. This hike follows a sharp rise in global oil prices after the Islamic Revolutionary Guards Corps closed the Strait of Hormuz in retaliation for U.S. and Israeli strikes that killed Iranian Supreme Leader Ayatollah Ali Khamenei.

To maintain market liquidity, Prime Minister Shehbaz Sharif approved a shift from fortnightly to weekly fuel price reviews. The government also reduced the petroleum levy on high-speed diesel from Rs 76.21 to Rs 55.20 per litre, partly to satisfy International Monetary Fund demands to eliminate fuel subsidies and pass costs to consumers.

Amid reports from the Pakistan Petroleum Dealers Association that diesel and petrol supplies had dropped by 20% and 50% respectively, Shehbaz Sharif ordered a crackdown on hoarding. He directed provincial authorities to seal petrol pumps and cancel licenses of violators, while mandating a digital dashboard to track fuel movement in real time. Finance Minister Muhammad Aurangzeb proposed conservation measures, including mandatory work-from-home policies and virtual education, to reduce national consumption.

To secure future energy needs, Pakistan is coordinating with Saudi Arabia to route oil through the Red Sea via the Port of Yanbu. Pakistan National Shipping Corporation vessels have been deployed to Yanbu and Fujairah, with Saudi Aramco offering to load large vessels to support local refineries. While officials maintain that national stocks remain sufficient for approximately 28 days, they warned that the situation could worsen if the regional conflict persists.