KARACHI: Pakistan has maintained relative stability in fuel pricing despite a sharp global oil shock triggered by geopolitical tensions, according to a report released by the Ministry of Information and Broadcasting.
The report highlights unprecedented volatility in global petroleum markets during March and early April 2026, with diesel prices witnessing an extraordinary surge. International diesel rates climbed from around $88 per barrel in late February to approximately $238 per barrel by early April — a cumulative increase of over 170%.
Petrol prices also showed sharp fluctuations, rising from about $74 per barrel equivalent to $138 by the third week of March before easing slightly and stabilising near $128 in early April.
Global crude benchmarks followed a mixed trajectory. Brent crude rose from $70 per barrel in late February to a peak of $106 in mid-March before moderating, while Dubai crude surged to $159 per barrel before declining to around $117.
According to the report, the most significant price spikes occurred in early March, reflecting immediate market reactions to geopolitical developments, followed by partial corrections later in the month.
The analysis shows that Asian economies faced the steepest fuel price increases, with diesel prices rising by as much as 82% in some markets and 50–70% across others. Countries such as Vietnam, Malaysia, and Australia recorded significant increases, while developed economies including the United States, Germany, and France also experienced notable upward pressure.
Despite these global trends, Pakistan’s retail fuel prices remained comparatively moderate, averaging around $1.2 per litre for diesel and $1.1 per litre for petrol. In comparison, Sri Lanka reported prices of approximately $1.3 and $1.2 per litre, while the Philippines recorded higher levels of $1.4 and $1.7. Although Bangladesh and Myanmar had slightly lower price levels, they faced sharper percentage increases.
The report also outlines global policy responses to the crisis. Sri Lanka introduced a digital fuel rationing system limiting weekly consumption, while Myanmar enforced nationwide rationing and remote working measures. The Philippines declared a national emergency, implemented a four-day workweek, and secured emergency fuel supplies, whereas Bangladesh adopted energy conservation steps and sought external financial support.
Other countries responded with measures such as reducing fuel taxes, shortening commercial hours, and strengthening supply chain controls to prevent hoarding.
The Ministry emphasised that Pakistan’s relative stability reflects timely policy interventions and a balanced approach to managing price volatility while ensuring supply continuity. However, analysts caution that continued fluctuations in global oil markets pose ongoing risks for import-dependent economies like Pakistan, underscoring the need for prudent energy management and diversification strategies.
Story by Muhammad Saqib
