ISLAMABAD: The federal government of Pakistan has announced a significant increase of Rs6 per litre in the price of high-speed diesel (HSD), setting the new rate at Rs284.44 per litre for the next 15 days. In a move that will impact transport and inflation, the price of petrol has been unexpectedly maintained at Rs265.45 per litre.
The new rates were enforced immediately after a notification was issued on Saturday, following a review based on recommendations from the Oil and Gas Regulatory Authority (OGRA) and relevant ministries. This decision comes against a backdrop of volatile international oil markets, where prices surged by approximately 2% on Friday. The global spike was driven by supply fears following a Ukrainian drone attack on an oil depot in the key Russian Black Sea port of Novorossiysk.
The government’s move, however, was less severe than initial market expectations, which had predicted a hike of up to Rs9.60 per litre for petroleum products. The anticipated increase was largely attributed to a reduction in diesel production in the Gulf region, caused by ongoing maintenance at a major oil refinery in Kuwait. This confluence of international events—geopolitical conflicts and refinery maintenance—has created upward pressure on fuel prices worldwide.
For the Pakistani public and economy, the diesel hike is particularly consequential. Diesel is the primary fuel for the country’s transport and agricultural sectors, meaning the increase will likely raise the cost of goods and services, contributing to already high inflation. The government’s choice to shield consumers from a petrol price increase may offer some relief to private car owners, but the diesel adjustment is set to have a broader economic impact for the remainder of November 2025.
Prior to this hikes, a severe diesel shortage has gripped various parts of Pakistan, triggered by speculation of an imminent price increase for petroleum products. The crisis emerged after private oil companies reportedly halted diesel supplies across the country starting November 16.
The disruption in supply has led to acute shortages in numerous cities, severely impacting transportation and other sectors reliant on the fuel. Noman Butt, Vice Chairman of the Petroleum Dealers Association, confirmed that private companies have stopped supplying diesel for the past three days, creating what he described as an “artificial shortage.” While diesel is still being supplied from Pakistan State Oil (PSO) depots, Butt stated that the quantity is insufficient to meet the nationwide demand, with companies setting quotas and repeatedly canceling orders.
