Islamabad, April 2, 2026 – Pakistan on Thursday announced an unprecedented increase in petroleum prices, pushing petrol to Rs458.40 per litre and high-speed diesel (HSD) to Rs520.35 per litre, effective from April 3, 2026. The sharp hike is among the largest in the country’s history and is expected to have widespread economic repercussions.
Federal Minister for Petroleum Ali Pervaiz Malik, while addressing a press conference alongside Finance Minister Muhammad Aurangzeb, said the decision was driven by escalating global oil prices and the ongoing geopolitical tensions in the Middle East.
According to the official announcement, petrol prices have been increased by Rs137.23 per litre, while diesel saw a massive jump of Rs184.49 per litre. The government cited rising import costs and pressure on foreign exchange reserves as key factors behind the move.
Ali Pervaiz Malik stated that the government had limited options as international energy markets remain volatile. He added that efforts were being made to ensure fuel supply stability despite the challenging global environment.
The steep increase is expected to trigger inflationary pressures across multiple sectors, particularly transportation, agriculture, and manufacturing, which heavily rely on diesel. Analysts warn that the price shock could further strain household budgets already impacted by high living costs.
Finance Minister Muhammad Aurangzeb emphasized that the government is closely monitoring the situation and may consider targeted relief measures for vulnerable segments if necessary.
The latest hike underscores Pakistan’s continued vulnerability to global energy shocks, raising concerns over inflation and economic stability in the coming months.