The Government of Pakistan announced a sharp increase in domestic fuel prices on Thursday, April 2, citing the impact of the ongoing Middle East conflict on global energy markets. Effective Friday, the price of high-speed diesel (HSD) rose by Rs184.49 per liter, while petrol increased by Rs137.24 per liter.
New Fuel Pricing Structure
Following a joint press conference by Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb, the Ministry of Energy notified the following price adjustments:
- High-Speed Diesel (HSD): Increased to Rs 520.35 per liter (54.9% hike).
- Petrol: Increased to Rs 458.40 per liter (42.7% hike).
- Kerosene: Increased to Rs 457.80 per liter.
Cumulative Impact Since Conflict Onset
The April 2 adjustment marks the second significant price increase since the regional conflict began on February 28. According to government data, the total change in fuel costs since the start of the war has reached historic levels.
Petroleum Minister Malik stated that the government had provided Rs129 billion in subsidies over the last three weeks but could no longer sustain blanket covers as international crude oil prices surpassed $250 per barrel.
The new prices are currently in effect nationwide. The government is expected to announce revised market operating hours next week following provincial consultations to further manage the energy crisis.
Comparative Fuel Price Trends in Pakistan: Feb 27 – April 2, 2026
Date | Petrol Price (Rs) | Diesel Price (Rs) | Total Change in % |
| Feb 27 (Pre-War) | 266.17 ($0.96) | 280.86 | Baseline |
| March 7 | 321.17 ($1.15) | 335.86 | +20% / +19% |
| April 2 (Peak) | 458.41 ($1.65) | 520.35 | +42.7% / +54.9% |
| Cumulative change as of April 2, 2026 | +72.2% | +85.3% |
Targeted Subsidy Initiatives
To mitigate the impact on low-income segments, Finance Minister Aurangzeb announced a shift toward targeted relief. Proposed measures include:
- Motorcyclists: A subsidy of Rs100 per liter for up to 20 liters per month.
- Agriculture: A one-time subsidy of Rs1,500 per acre for small farmers.
- Transport: Monthly support of up to Rs100,000 for inter-city and goods transport to stabilize food supply costs.
Global Market Context
The price surge follows intensified military operations in the Middle East, which led U.S. oil prices to jump 11% and Brent crude to rise over 7% in a single day of trading. Minister Malik noted that Pakistan procures 80% of its energy from the Dubai and Oman markets, both of which have seen record volatility.