Govt holds petrol, diesel prices despite global surge

The federal government has decided to keep petrol and high-speed diesel (HSD) prices unchanged for the week starting March 21, despite a sharp rise in international oil prices.

According to the Petroleum Division, HSD will remain at Rs335.86 per litre, while petrol will stay at Rs321.17 per litre.

The government will absorb the increase in global prices, which stood at Rs176.41 per litre for HSD and Rs77.98 per litre for petrol, by compensating oil marketing companies (OMCs) through price differential payments.

A statement issued by the Petroleum Division said the decision was taken to maintain domestic price stability despite significant volatility in international markets.

Earlier, the government had allocated Rs23 billion in price differential claims to OMCs to cushion the impact of rising oil prices, with funding supported through austerity measures.

Global oil markets have remained volatile in March 2026, with Brent crude trading above $100–110 per barrel due to supply concerns linked to the ongoing conflict in the Middle East and risks to energy infrastructure in key producing regions.