Post by : Shakul

The government of Pakistan has significantly increased fuel costs by raising the levy on high-octane fuel by 200%, amid rising global oil prices and tensions around the Strait of Hormuz.

The decision was approved by Prime Minister Shehbaz Sharif during a high-level meeting focused on fuel pricing and economic measures. As per official details, the levy on high-octane fuel has been increased from PKR 100 to PKR 300 per litre, mainly impacting luxury vehicle users.

Authorities clarified that this specific increase would not directly affect public transport fares or air travel costs, as it applies primarily to high-end fuel categories. However, broader fuel price revisions have already impacted the economy.

Earlier in March 2026, Pakistan raised petrol and diesel prices by PKR 55 per litre due to a surge in global crude oil prices. These increases have been linked to geopolitical tensions, including conflicts affecting oil supply routes, particularly around the Strait of Hormuz — a critical passage through which a significant portion of the world’s oil supply is transported.

Following the latest revision, petrol prices have risen to PKR 321.17 per litre from PKR 266.17, while diesel now costs PKR 335.86 per litre, up from PKR 280.86. These changes reflect mounting pressure on Pakistan’s energy sector and economy.

The announcement was made by Petroleum Minister Ali Pervaiz Malik alongside senior officials, including Finance Minister Muhammad Aurangzeb and Deputy Prime Minister Ishaq Dar.

The impact of rising fuel prices has already been felt in the aviation sector, with domestic airfares increasing by PKR 2,800 to PKR 5,000, and international ticket prices rising by up to PKR 28,000, particularly on routes to the Middle East and Central Asia.

Experts warn that continued volatility in global oil markets, especially disruptions near key shipping routes, could further strain Pakistan’s economy in the coming months.

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