The Government of Pakistan has moved to a high-frequency, weekly petroleum pricing mechanism to safeguard national energy security against the “extraordinary volatility” of the U.S.-Israel-Iran war. Following a high-level huddle chaired by Prime Minister Shehbaz Sharif, Petroleum Minister Ali Pervaiz Malik announced a sharp upward revision in fuel prices, effective immediately, to reflect the 37% to 70% surge in global Platts prices caused by the closure of the Strait of Hormuz.
War-Time Pricing Strategy
In a move to balance the fiscal burden while ensuring the “uninterrupted availability” of fuel, the government has implemented the following rates:
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High-Speed Diesel (HSD): Increased by Rs55, bringing the new price to Rs336 per litre.
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MS Petrol: Increased by Rs55, bringing the new price to Rs321 per litre.
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Kerosene & LDO: Prices surged to Rs319 and Rs235 respectively, as the government prioritizes the preservation of high-demand transport fuels.
Minister Malik, accompanied by Deputy PM Ishaq Dar and Finance Minister Muhammad Aurangzeb, emphasized that while the domestic increase is significant, it remains below the 70% surge seen in international diesel markets. To protect the agriculture and public transport sectors, the government strategically reduced the petroleum levy on diesel to Rs55, while adjusting the levy on petrol to Rs105.4.
Press Release by Ministry of Energy (Petroleum Division) Hiking Price of Petroleum Products on recommendations of OGRA
National Resilience and Strategic Reserves
Despite the “fire engulfing the region,” Finance Minister Muhammad Aurangzeb assured the nation that Pakistan’s macroeconomic indicators remain stable.
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Comfortable Reserves: The government has successfully built petroleum reserves to a “comfortable level,” ensuring no immediate shortage despite the regional supply chain breakdown.
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Proactive Management: Minister Aurangzeb noted that “hope is not a strategy,” confirming that the “Whole of Government” is engaged in daily scenario planning to manage the impact of the $92-per-barrel Brent Crude reality.
Adjustments in POL Prices Announced Amid Escalating Global Energy Crisis; Nation Assured of Adequate Energy Stocks
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has stated that the Government of Pakistan has been closely monitoring the rapidly evolving… pic.twitter.com/r2Si821Hd9
— Ministry of Finance, Government of Pakistan (@Financegovpk) March 6, 2026
Diplomatic and Economic Countermeasures
Deputy PM Ishaq Dar highlighted Pakistan’s intensive “shuttle diplomacy” with Central Asian and Middle Eastern partners to find alternative supply routes following the Force Majeure notice issued by QatarEnergy.
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De-escalation Efforts: Pakistan remains in active contact with regional powers to advocate for a ceasefire and the reopening of maritime chokepoints.
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Demand Compression: The Prime Minister is currently reviewing a comprehensive “Conservation Action Plan,” which includes proposals for a four-day workweek, mandatory 50% work-from-home protocols, and a reduction in fuel allowances for government officials to stretch existing reserves.
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Zero Tolerance for Market Manipulation
The Prime Minister has issued a “Red Alert” to all provincial administrations to launch a crackdown on hoarders. While long queues were observed at filling stations during Iftar, the government clarified that these were driven by speculation rather than actual scarcity. Any oil marketing company or dealer found withholding stocks to exploit the weekly price revision will face immediate license cancellation and criminal prosecution.
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