Pakistan Fuel Prices: Kerosene Hike and Petrol Subsidy Concerns

Islamabad – Pakistan’s Oil and Gas Regulatory Authority (OGRA) announced a significant increase in kerosene prices on Saturday, March 7, 2026, raising the cost by nearly 70 percent to Rs318.81 per litre. This follows a recent increase in petrol and high-speed diesel prices, sparking concerns about affordability, particularly for households in remote areas.

Kerosene Price Surge

The price of kerosene has been increased by Rs130.08, reaching Rs318.81 per litre, effective March 7, 2026. Previously, on March 1, 2026, kerosene was priced at Rs 188.73 per litre. Kerosene remains a crucial fuel source for households in areas with limited access to liquefied petroleum gas (LPG) cylinders.

Petrol and Diesel Price Increases

The kerosene price hike occurred just one day after the government increased prices for petrol and high-speed diesel. These fuels account for the bulk of monthly sales, approximately 700,000 to 800,000 tonnes, compared to the comparatively low 10,000 tonnes of kerosene demanded monthly.

Government Response and Policy Shifts

Despite assurances from Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb regarding sufficient petroleum reserves and a controlled situation, the government proceeded with the price increases. A proposed national action plan, which included measures like work-from-home and distance learning to mitigate a potential fuel crisis, was similarly shelved, with normal activities set to continue for at least a week.

Public Reaction and Fuel Station Closures

The announcement of the price hike led to long queues at petrol pumps across various cities as consumers rushed to purchase fuel at the older, lower rates. Some fuel stations reportedly temporarily closed their pumps to avoid selling fuel at the previous prices.

About OGRA

The Oil & Gas Regulatory Authority (OGRA) was established by the Federal Government on March 28, 2002, under the Oil and Gas Regulatory Authority Ordinance, 2002. OGRA is responsible for regulating the oil and gas sector in Pakistan, with the aim of fostering competition and protecting public interest (Wikipedia). The authority is currently led by Chairman Masroor Khan, with Members overseeing Gas, Finance, and Oil affairs: Shakeel Ahmed (Member Finance), Zain-ul-Abideen Qureshi (Member Oil), and Shahzad Iqbal (Member Gas).