Petrol Price in Pakistan Expected to Change The Ministry of Finance, following recommendations from the Oil and Gas Regulatory Authority (OGRA), has approved a hike in petroleum products. While early market signals hinted at a possible relief due to global oil price fluctuations, the government ultimately decided on an increase to align with fiscal requirements and import costs.
New Fuel Prices in Pakistan (Effective Feb 16, 2026)
| Fuel Type | Old Price (PKR) | New Price (PKR) | Increase (PKR) |
| Petrol (Motor Spirit) | Rs. 253.17 | Rs. 258.17 | + Rs. 5.00 |
| High-Speed Diesel (HSD) | Rs. 268.38 | Rs. 275.70 | + Rs. 7.32 |
| Kerosene Oil | Rs. 176.81 | Rs. 176.81 | No Change |
| Light Diesel Oil (LDO) | Rs. 159.76 | Rs. 159.76 | No Change |
Why Did Petrol Prices Increase?
The 2026 pricing mechanism in Pakistan remains tied to several critical factors that determine the final rate at the pump:
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Global Crude Oil Trends: International oil prices have been hovering around $64–$65 per barrel. Any slight upward movement in the global market is immediately reflected in Pakistan’s domestic rates.
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Exchange Rate Stability: While the Pakistani Rupee has shown resilience, the cost of importing refined petroleum products still fluctuates based on the US Dollar’s strength.
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Petroleum Development Levy (PDL): To meet revenue targets agreed upon with international financial institutions, the government maintains a specific levy on every liter of fuel sold.
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Import & Freight Charges: The cost of bringing fuel to Pakistani ports and transporting it to various cities also plays a role in the fortnightly review.
Impact on Daily Life and Inflation
Fuel prices are the backbone of the economy. This recent hike is expected to have a ripple effect:
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Commuters: Bike and small car owners will see a direct increase in their monthly fuel budgets.
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Public Transport: Fares for rickshaws, buses, and wagons are likely to be adjusted upward by transporters in the coming days.
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Food Prices: Since High-Speed Diesel (HSD) powers the majority of heavy transport trucks and agricultural machinery, the cost of transporting vegetables, grains, and milk may rise, leading to “cost-push” inflation.
How the Review Process Works
Pakistan follows a fortnightly review system. This means prices are checked and updated every 15 days (usually on the 1st and 16th of every month).
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OGRA prepares a summary based on the previous 15 days’ average international prices.
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The Petroleum Division and Ministry of Finance review the fiscal impact.
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The Prime Minister gives the final approval before the new rates are notified at midnight.
Future Outlook: What to Expect Next?
The current rates will remain in force until February 28, 2026. The next review is scheduled for March 1, 2026. Experts suggest that if global supply chains remain stable and the currency holds its value, we might see a price freeze or a slight reduction in the next cycle.