Pakistan Fuel Prices Rise Amidst International Market Fluctuations

Islamabad – Pakistan’s petroleum division announced price increases for petrol and high-speed diesel (HSD) on Sunday, February 16, 2026, citing movements in the international market. Petrol prices rose by Rs5 per litre, while HSD increased by Rs7.32 per litre, effective until the complete of February.

Price Adjustments

The ex-depot price of HSD has been increased to Rs275.70 per litre, a 2.7% rise from the previous price of Rs268.38 per litre. Petrol prices were adjusted upwards to Rs258.17 per litre, a 2% increase from Rs253.17 per litre. These adjustments were made following recommendations from the Oil & Gas Regulatory Authority (OGRA) [OGRA Website] and reflect changes in global market prices.

Impact on Consumers and Sectors

HSD is the primary fuel for the transportation sector, including heavy vehicles, trains and agricultural machinery. Increases in HSD prices are expected to contribute to inflationary pressures, particularly affecting the cost of transporting goods and agricultural produce. Petrol is predominantly used in private transport, impacting the budgets of middle and lower-middle-class families.

Government Levies and Taxes

The Pakistani government currently levies approximately Rs105 per litre on petrol and Rs97 per litre on diesel. While general sales tax (GST) is currently zero on all petroleum products, a petroleum levy is applied at Rs79 per litre on diesel and Rs87 per litre on petrol and other high octane products. A climate support levy (CSL) of Rs2.50 per litre is too included. A custom duty of around Rs17-18 per litre is charged on both petrol and HSD, regardless of whether they are locally produced or imported. Distribution and sale margins for oil companies and dealers amount to approximately Rs17 per litre.

Revenue from Petroleum Levy

Petrol and HSD are significant revenue sources for the government. In fiscal year 2025, the government recovered approximately Rs1.161 trillion through the petroleum levy alone. This figure is projected to increase by around 27% to Rs1.470 trillion during the current fiscal year.

Ministry of Energy Oversight

The Ministry of Energy (Petroleum Division) [Ministry of Energy Website] oversees Pakistan’s energy sector, including petroleum policies and pricing. The government continues to monitor international market trends and adjust domestic prices accordingly.