Pakistan Fuel Prices Rise Amid Shortages and Strike Threats

The Government of Pakistan increased petrol and high-speed diesel prices for several consecutive days ending July 24, 2026, as part of a new daily pricing mechanism launched on July 17. This system aims to align domestic costs with international market trends and exchange rate fluctuations following hostilities in West Asia. By July 25, petrol prices had climbed from Rs316.15 on July 20 to Rs335.18 per litre.

These price surges contributed to a 0.91% increase in weekly inflation, with diesel and petrol prices jumping 15.87% and 5.23% respectively, according to the Pakistan Bureau of Statistics. The volatility triggered a fuel crisis in Khyber Pakhtunkhwa, specifically in Dera Ismail Khan and along Chashma Road, where stations ran dry. This scarcity fueled a black market where petrol reached 500 PKR per litre and drove up public transport fares.

Industry reactions have been volatile. The All Pakistan Petrol Pumps Association initially planned a nationwide strike but postponed the action after Petroleum Minister Ali Pervaiz Malik assured dealers that issues regarding margins would be addressed within two weeks. However, goods transporters have since warned of their own nationwide strike, citing unsustainable financial pressure on freight businesses due to the rapid price increases.