Islamabad – Pakistan’s fuel prices have seen a significant increase compared to March 2022, reflecting both global market volatility and domestic taxation policies. On April 3, 2026, petrol is priced at Rs 458.49 per litre and high-speed diesel at Rs 520.35 per litre, marking a dramatic rise from the rates observed four years ago.
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In March 2022, Pakistan’s petrol prices were around Rs 149.86 per litre, while diesel cost Rs 144.15 per litre. At that time, Brent crude averaged approximately $117 per barrel, and U.S. crude hovered around $128 per barrel amid the Russia-Ukraine conflict. Current global oil prices are in the $108–$120 range, similar to March 2022 levels, but domestic fuel rates have escalated sharply due to additional levies and ongoing Middle East tensions.
The federal government has significantly raised the petroleum levy in response to both IMF recommendations and budgetary requirements. The levy on petrol has increased by Rs 55 per litre, now standing at Rs 160.61 per litre. Levies on other petroleum products have also been adjusted, including high-octane fuel at Rs 305.37 per litre, kerosene at Rs 20.36 per litre, light diesel at Rs 15.84 per litre, and furnace oil at Rs 77 per metric ton. The total petroleum levy target for the current fiscal year has been set at Rs 1,468 billion.
Officials cite geopolitical tensions in the Middle East, especially disruptions to the Strait of Hormuz, as a major factor behind the spike in prices. Analysts also note that rising global crude costs, combined with the government’s fiscal measures, have translated into record-high domestic fuel rates.
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The recent increases have already prompted legal challenges in the Lahore High Court, with citizens and advocacy groups questioning the steep rise and its impact on the cost of living. As energy costs continue to climb, the government faces mounting pressure to balance revenue collection with public relief measures.