ISLAMABAD: The federal government increased petrol and high-speed diesel (HSD) prices by Rs26.77 per litre each for one week, starting from April 25.
According to a notification issued by the Petroleum Division, the new price of petrol has been set at Rs393.35 per litre, while HSD will cost Rs380.19 per litre.
The notification said the new rates will remain in effect for seven days from April 25, 2026.
The government has been reviewing fuel prices every night in recent weeks due to the situation in the Middle East, especially after the pause in the US-Israel war with Iran, which started on February 28.
In the previous review, the prime minister had reduced the price of high-speed diesel by Rs32.12 per litre, while the petrol price was kept unchanged.
Despite a drop in global oil prices , the government increased local fuel prices. International oil rates fell after reports suggested that a second round of talks in the Middle East could resume, raising hopes of ending the conflict that has disrupted oil supply from the Gulf.
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Earlier, oil prices had increased due to concerns over delays in resolving the crisis. Iran had kept the Strait of Hormuz closed, while the United States continued a blockade of Iranian ports.
However, prices eased after reports that Iran’s Foreign Minister Abbas Araghchi was expected to arrive in Islamabad. Brent crude, the global oil benchmark, dropped below $100 per barrel.
In a related development, the increase came as the government passed on the impact of global oil prices from the past two weeks and also tried to increase revenue in the final months of the current fiscal year under commitments with the International Monetary Fund (IMF).
The IMF executive board is expected to approve more than $1.2 billion in the first half of May under two ongoing programmes.
Earlier estimates suggested that diesel prices could fall by around Rs25 per litre and petrol by Rs6 per litre. However, the government adjusted the petroleum levy, especially on petrol, to meet fiscal targets.
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Officials said the price hike was announced quietly by the Petroleum Division on the same day when Iran and the United States sent their teams to Islamabad for a second round of talks.
With the latest increase, the ex-depot price of diesel rose to Rs380.19 per litre from Rs353.42, while petrol increased to Rs393.35 from Rs366.58 per litre.
Sources said diesel prices had earlier dropped from a peak of Rs520.35 on April 10 after a temporary relief in petroleum levy, which was later partially restored. Diesel is widely used in transport and is considered a major factor in inflation.
After the revision, the government is now charging about Rs135 per litre in taxes on petrol and around Rs65 per litre on diesel, including petroleum levy and other duties.
The petroleum levy on petrol was increased by about Rs27, taking it from Rs80 to Rs107.38 per litre, while the levy on diesel was kept at zero at the retail level.
Petroleum Minister Ali Pervez Malik said rising regional tensions had pushed oil prices up again, and the government had to pass on the burden to consumers under international agreements.
He said the government had tried to absorb the impact for as long as possible and had earlier provided relief to the public.
Fuel prices have increased significantly since February 28, when the US-Israel conflict with Iran affected global energy markets. Petrol prices have risen from Rs266 per litre and diesel from Rs281 per litre since then.
Petrol and diesel remain key sources of government revenue, with monthly sales estimated between 700,000 and 800,000 tonnes, compared to about 10,000 tonnes for kerosene.
