Pakistan has announced a steep increase in petrol and diesel prices in what officials described as the first major economic impact of the ongoing Middle East crisis. In an overnight decision, the government has increased the prices of both petrol and high-speed diesel by PKR 55 per litre, which is the largest hike in the history of the country so far.
#BREAKING: Pakistan plunges into a fuel crisis as the government hikes petrol and diesel prices by PKR 55 per litre, citing surging global oil costs linked to escalating Middle East tensions. Long queues and panic buying reported at petrol pumps across the country. pic.twitter.com/QUPoE6aXFM
— Aditya Raj Kaul (@AdityaRajKaul) March 6, 2026
The announcement was made just before midnight on Friday, 6th March, during a press conference addressed by Petroleum Minister Ali Pervaiz Malik, Deputy Prime Minister and Foreign Minister Ishaq Dar, and Finance Minister Muhammad Aurangzeb.
Despite the sharp hike, government officials said the country currently has enough petroleum reserves to meet domestic demand.
With this revision, it has been decided that the ex-depot price of high-speed diesel will be fixed at PKR 335.86 per litre for the coming week. Previously, it was fixed at PKR 280.86 per litre, which is an increase of nearly 20%.
Similarly, Petrol prices have also been increased from PKR 266.17 per litre to PKR 321.17 per litre, which is an increase of around 17%.
Conflict in West Asia affecting oil supplies
Petroleum Minister Malik said the rising tensions and conflict in West Asia had created uncertainty across the region and were already affecting global energy supply and prices.
“The fire that started in a neighbouring country has spread across the entire region. We do not know how long this crisis will continue, and there is no clear timeline for its end,” he said.
He explained that Pakistan depends heavily on oil shipments that pass through the Strait of Hormuz, one of the world’s most important energy routes. Because of the ongoing conflict in the region, oil supplies moving through this route have been affected.
Malik also warned traders against hoarding fuel or creating artificial shortages in the country. According to him, the government is closely monitoring supply levels, and strict action will be taken if anyone tries to exploit the situation.
He also said that two Pakistani oil vessels are currently travelling through alternative routes to ensure supply continues.
Government to review fuel prices every week
Due to the rapidly changing global situation, the government has decided to review petroleum prices every week instead of following the usual schedule.
“As soon as the situation improves internationally, we will reduce prices at the same speed,” Malik said.
Deputy Prime Minister Ishaq Dar said global oil prices had surged significantly after the crisis began. “In many countries, prices increase automatically, but we tried to pass on the minimum possible impact to consumers and find a balanced solution,” he said.
Finance Minister Aurangzeb also tried to reassure the public, saying Pakistan currently has “comfortable” petroleum reserves and the country’s economic situation remains stable. However, he added that the government would continue to closely monitor developments in the international market.
Following the announcement, long queues formed at petrol pumps in cities like Lahore, Karachi, Islamabad, and Rawalpindi. There were reports of scuffles and even fights. The government has warned that strict action will be taken against any dealers found hoarding fuel.
