In April 2026, energy prices rose sharply due to the blockage of the Strait of Hormuz. The last time inflation exceeded 10 percent was in July 2024, when the Consumer Price Index (CPI) reached 11.1 percent.

Key statistics:

• Urban inflation stood at 11.11 percent compared to 10.56 percent in rural areas.
• Food inflation increased by 6.9 percent in urban areas and 7.3 percent in rural areas.
• Core inflation was recorded at 8 percent in urban areas and 8.5 percent in rural areas.

The State Bank of Pakistan responded by increasing its policy rate from 10.50 percent to 11.50 percent. This decision aligns with commitments made to the International Monetary Fund.

Prime Minister Shehbaz Sharif noted that the weekly oil import bill has jumped significantly, from $300 million to $800 million since the onset of the US-Israel war on February 28.

Dr. Ashfaq H. Khan stated that interest rates are a demand-side tool, effective when demand exceeds supply.

The Euro area annual inflation is expected to be 3.0 percent in April, an increase from 2.6 percent in March.

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Key statistics:

• The previous petrol price was Rs366.58 per litre.
• The old price of high-speed diesel was Rs353.42 per litre.
• The government increased fuel prices again by Rs26.77 per litre on April 25, 2026.
• Pakistan’s oil import bill surged from $300 million to $800 million due to the conflict.
• The State Bank of Pakistan raised its key policy rate to 11.5 percent.

Fuel prices directly impact inflation and the cost of living in Pakistan. The country relies heavily on imported energy, making it vulnerable to global fuel price fluctuations. Aslam Ghauri criticized the government’s policies, stating, “The government’s flawed policies have imposed an economic war on the people.” Kaiser Bengali noted the dire situation, saying, “We are in a state of absolute dependency, where even a $1bn tranche can make the difference between survival and collapse.”

The recent increases come amid ongoing negotiations with the International Monetary Fund (IMF). The government seeks financial support to stabilize its economy, which faces significant challenges due to rising transport costs and inflation.

As Pakistan navigates this economic crisis, officials have not provided a clear timeline for potential relief measures or adjustments in fuel pricing. The situation remains fluid as both domestic and international factors continue to influence the country’s economic landscape.

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The petroleum levy on petrol increased to Rs107.4 per litre. Total collections from this levy have exceeded Rs1.2 trillion in the first nine months of the fiscal year. Taxation on petrol now totals roughly Rs134 per litre, which includes various duties and climate-related charges.

Diesel has a lower levy exposure at around Rs36 per litre, including customs duties and climate support components. Yet, the increase in diesel prices could affect the cost of daily essentials, public transport fares, and the movement of goods across the country.

The government plans to implement an additional Rs2.5 per litre increase in the climate support levy starting July 1. This move signals ongoing adjustments in fuel pricing strategy as authorities navigate fiscal consolidation linked to the International Monetary Fund programme.

The revised prices for both petrol and diesel will take effect from midnight on April 25, 2026. “This hike may not stay limited to petrol pumps,” another source cautioned, hinting at broader economic implications.

As inflationary pressures mount, citizens are left wondering how these changes will impact their daily commutes and overall living costs. Kerosene prices were reduced by Rs63.6 per litre to Rs365, while light diesel oil saw a decrease of Rs29 per litre to Rs270.

The situation remains fluid as officials continue to assess the impacts of global oil prices and domestic taxation policies on local markets.

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What is the current petrol price today in Pakistan? As of March 23, 2026, petrol prices stand at PKR 321.17 per litre, reflecting a significant increase in fuel levies aimed at generating government revenue.

The levy on high-octane fuel has been raised to PKR 300 per litre from PKR 100 per litre. This decision, according to Prime Minister Shehbaz Sharif, is expected to save the government 9 billion rupees monthly, with plans to provide relief to the public from these savings.

In addition to petrol, diesel prices have also seen an increase, currently priced at PKR 335.86 per litre. The latest adjustment in fuel prices occurred on March 6, 2026, when petrol prices rose by PKR 55 per litre.

The increase in high-octane fuel levy is strategically designed to avoid impacting public transport users directly. The government has committed to absorbing the rise in global oil prices through price differential payments to oil marketing companies.