KARACHI – The federal government has increased the price of kerosene oil by Rs4.66 per litre, taking it to Rs433.40 per litre, effective March 28, according to a notification issued by the Petroleum Division.
Read More: Pakistan raises fuel prices sharply as Middle East war shakes oil
Despite rising global oil prices, the government decided to keep petrol and high-speed diesel (HSD) rates unchanged at Rs321.17 and Rs335.86 per litre, respectively, in an effort to protect consumers from inflationary pressures.
لاہور: 27 مارچ 2026.
وزیرِ اعظم محمد شہباز شریف کا قوم سے خطاب. pic.twitter.com/Ckh0uUAFzK— Prime Minister’s Office (@PakPMO) March 27, 2026
Officials said the decision reflects a policy aimed at shielding the public from international market volatility, even as domestic fuel pricing remains under strain. Under the latest notification, the government will pay oil marketing companies Rs95.59 per litre on petrol and Rs203.88 per litre on diesel under the Petroleum Development Cess (PDC).
The adjustment follows an earlier revision on March 21, when kerosene prices rose sharply to Rs428.74 per litre, indicating sustained upward pressure on fuel costs. Analysts say ongoing geopolitical tensions, particularly in the Middle East, continue to disrupt global energy markets and drive price fluctuations.
Earlier in the day, Prime Minister Shehbaz Sharif addressed the nation, confirming that he had rejected a proposal to significantly increase petrol and diesel prices. He stated that the government would absorb an estimated Rs56 billion burden to maintain current rates.
Read More: Govt announces sharp increase in light diesel price
Sharif also highlighted Pakistan’s diplomatic engagement in the region, including ongoing talks with Iran and Gulf nations, led by Foreign Minister Ishaq Dar, aimed at promoting stability amid the crisis.
The latest kerosene price hike is expected to impact lower-income households and small businesses that rely heavily on the fuel, as broader economic challenges persist.