Pakistan set to raise fuel prices as global oil costs rise

The Pakistani government is likely to raise petroleum product prices for the next fortnight, following a rise in international oil benchmarks that has increased the landed cost of key fuels, according to official calculations.

The latest working shows that the price of high-speed diesel may rise by PKR 2.52 per liter, while petrol is expected to cost PKR 2.35 per liter more. The adjustment is part of the government’s regular fortnightly price review, which reflects global market movements and exchange rate fluctuations.

The proposed increase follows an uptick in international crude prices, with diesel climbing by $2 per barrel to $90 and petrol (gasoline) rising by $1.40 to $81.44 per barrel, according to the working.

Officials from oil marketing companies said the higher global prices have pushed up the landed cost of both fuels, making the adjustment necessary to maintain supply stability and prevent losses for distributors.

Brent crude has been edging upward over the past two weeks amid renewed supply concerns, as OPEC+ members are expected to extend production cuts. The modest rise in Pakistan’s domestic petroleum prices mirrors broader regional trends, where refined fuel prices have moved largely in line with global crude benchmarks.

Energy analysts said the price adjustment was expected given the upward movement in international markets.

“With diesel stabilizing near the $90-per-barrel mark, Pakistan’s fuel price structure is likely to remain under pressure in the coming review periods,” one analyst said. “However, the relatively modest increase suggests the government is trying to balance inflationary concerns with fiscal realities.”

He added that any sustained rise in global oil prices could widen Pakistan’s import bill and add pressure on the current account, though the impact may be partly offset if the Pakistani rupee remains stable against the U.S. dollar.

Economists warned that the latest revision could add slight upward pressure on inflation, which remains sensitive to energy price changes. While the current hike is minor, successive increases could weigh on household budgets and transportation costs, they said.

The government will review petroleum prices again in mid-November, depending on global market movements and exchange rate trends.