Government Hikes Diesel Prices Significantly While Petrol Rates Remain Unchanged

The federal government of Pakistan has increased the price of high-speed diesel by Rs. 11.30 per litre, effective February 1, 2026, following a recommendation from the Oil and Gas Regulatory Authority. Diesel prices now stand at Rs. 268.38 per litre, up from Rs. 257.08, while petrol prices remain unchanged at Rs. 253.17 per litre for the next 15 days. The decision aims to manage rising fuel costs while providing temporary relief to petrol users.

Diesel is a critical fuel for Pakistan’s transportation, agriculture, and industrial sectors. Commercial vehicles, buses, and trucks rely on diesel, making transport costs more expensive. In agriculture, diesel powers tractors, harvesters, and irrigation equipment, affecting production costs. Industries using diesel-powered machines and generators may face higher operating expenses, which could lead to increased prices for goods and services. The overall impact of the diesel price hike is likely to create inflationary pressure across the economy, particularly on essential items.

The government cites several reasons for the diesel price increase, including rising global oil prices, depreciation of the Pakistani Rupee, and overall market conditions. Global crude oil fluctuations increase import costs, while currency weakness makes fuel more expensive. The price adjustment aligns domestic diesel rates with international trends, aiming to stabilize the energy market and manage the fiscal deficit.

Petrol prices remain stable to provide relief to consumers, especially private car and motorcycle users. Maintaining petrol prices temporarily balances the economic impact of rising diesel costs, helping households avoid additional financial strain. Fuel prices will be reviewed every 15 days based on global and domestic market conditions, reflecting a responsive approach to energy pricing.

The diesel price increase will influence multiple economic areas, including higher transportation costs, elevated agricultural production expenses, increased industrial operating costs, and overall inflation. Businesses and households that rely on diesel-powered logistics, machinery, or generators may experience a rise in the cost of goods and services. While the government’s approach attempts to balance the economy, the ripple effects of the diesel price hike are expected to affect both consumers and industries in the coming weeks.

The diesel price adjustment underscores the challenges posed by global oil price volatility and domestic energy management, marking a significant step in Pakistan’s ongoing efforts to stabilize the fuel market.