Petrol and Diesel Rates Expected to Increase
ISLAMABAD, Feb 26 – Petroleum product prices are likely to rise this week, with revised rates expected to take effect from March 1, 2026, subject to government approval. According to estimates shared by Arif Habib Limited, the proposed increase could reach as high as Rs6.8 per litre.
The price of Motor Spirit (MS) petrol is expected to climb by Rs5.13 per litre, bringing the new rate to Rs263.30 per litre. Similarly, high-speed diesel (HSD) may see a sharper increase of Rs6.8 per litre, pushing its price to Rs282.50 per litre.
Earlier in the previous fortnight, the federal government raised the HSD price to Rs275.7 per litre and petrol to Rs258.17 per litre. If approved, the latest revision would add further pressure on consumers already grappling with inflationary trends.
Global Oil Trends Drive Adjustment
The anticipated hike primarily reflects rising international oil prices. Arab Light crude recorded a 2.7 percent increase during the assessment period, contributing significantly to the proposed adjustment. In addition, a slight rise in petroleum spreads further amplified the overall price revision.
Oil marketing companies and refineries adjust domestic fuel prices based on fluctuations in global crude benchmarks and exchange rate movements. Therefore, any sustained upward trend in international markets typically translates into higher local fuel costs.
The government reviews petroleum prices on a fortnightly basis, taking into account recommendations from relevant authorities. While officials have yet to issue a final notification, market analysts expect the new rates to be announced before the end of the month.
Consumers and transport sectors are closely monitoring developments, as fuel price changes directly affect transportation costs and broader economic activity nationwide.
