Pakistan Raises Fuel Prices and Increases Dealer Margins

The Pakistan Oil and Gas Regulatory Authority increased petrol and diesel prices effective August 25, 2026. Petrol prices rose by 39 paisas per litre to Rs341.98, and high-speed diesel increased by Rs2.40 per litre to Rs370.69. These adjustments follow a volatile week in international oil markets where Brent and WTI crude benchmarks surged over 5 percent, driven by tensions between the United States and Iran and reduced tanker traffic through the Strait of Hormuz.

Simultaneously, the Economic Coordination Committee approved a 14 percent increase in the dealers' margin for both fuel products, raising the rate from Rs8.64 to Rs9.98 per litre. This margin adjustment was backed by Prime Minister Shehbaz Sharif and approved during a virtual meeting chaired by Finance Minister Aurangzeb.

The government's decision to increase margins led the Pakistan Petroleum Dealers Association to postpone a nationwide strike that had been planned for August 15, 2026. While global crude prices saw a slight decline in early Asian trading on Monday due to profit-taking, market sentiment remains cautious as traders await a new U.S. sanctions package targeting Iranian crude exports.