ISLAMABAD: Public outraged across the country after the federal government announced a massive increase of Rs. 55 per liter in the prices of petrol and high-speed diesel (HSD) late Friday night, effective from March 7, 2026, causing 20 percent increase in transport fares.
The decision, finalized in a high-level meeting chaired by Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, and Petroleum Minister Ali Pervaiz Malik, brings fuel costs to their highest levels in years.
Addressing a press conference, Deputy PM Ishaq Dar stated that the “spillover” of the US-Israel-Iran conflict into the wider West Asia region has decimated global energy stability.
International oil prices jumped from $78 to over $106 per barrel in a single week.
ships passing through the Strait of Hormuz have skyrocketed from $30,000 to $400,000, forcing the government to pass the “war risk” costs onto the public.
Sources confirm that the IMF pushed for this immediate pass-through during virtual talks to prevent further fiscal deficit.
The announcement triggered chaos at fuel stations in major cities like Peshawar, Lahore, and Karachi, with citizens queuing for hours.
The Goods Transport Alliance has hinted at a nationwide strike, warning that freight charges will rise by at least 20%, which is expected to trigger a fresh wave of food inflation.
Prime Minister Shehbaz Sharif has ordered provincial administrations to take “stern action” against petrol pump owners creating artificial shortages.
The government announced that fuel prices will now be reviewed on a weekly basis instead of fortnightly. This move aims to allow “real-time recovery” of supply costs as the global market remains highly volatile.
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