ISLAMABAD: The federal government has decided to absorb a significant spike in global oil costs to maintain domestic fuel stability. Despite international price surges of Rs 176.41 per litre for High-Speed Diesel (HSD) and Rs 77.98 per litre for petrol, the government will keep prices unchanged for the week beginning March 21.
According to a statement of Petroleum Division, the rate of HSD will remain at Rs 335.86 per litre and petrol at Rs 321.17 per litre.
“Despite the significant rise in international petroleum prices, the government has decided to keep the prices of HSD and MS unchanged. The government will compensate OMCs by covering the price differential of Rs 176.41 per litre for HSD and Rs 77.98 per litre for MS,” the statement reads out.
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The government had already absorbed earlier price pressures by agreeing to pay Rs23 billion in price differential claims to oil marketing companies, supported by emergency fund funded through austerity measures.
Global oil prices are experiencing high volatility and upward pressure in March 2026, with Brent crude frequently exceeding USD100–110 per barrel, driven by severe supply concerns due to heightened conflict in the Middle East. While volatility is high, prices are elevated on fears of energy infrastructure disruption in major oil-producing regions.
Copyright Business Recorder, 2026
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