IMF asks Pakistan to immediately raise petrol, diesel prices in line with global rates

2026-03-06 - 10:03

ISLAMABAD – The International Monetary Fund (IMF) has asked Pakistan to immediately increase petrol and diesel prices in line with global market rates and avoid providing any subsidy on petroleum products. The sources said that the virtual negotiations between Pakistan and the IMF are currently underway regarding energy pricing and fiscal targets. During the talks, IMF officials reportedly urged the Pakistani government to pass on the recent increase in international petroleum prices to consumers without delay. The lender also stressed that no subsidy should be provided on petrol or diesel and that domestic prices must reflect global market trends. The IMF further emphasised the need for Pakistan to achieve its petroleum development levy (PDL) target of Rs1.468 trillion by June 30. Officials reportedly asked the government to ensure that the target is met by maintaining the current taxation structure on petroleum products. Sources said that between July and December, Pakistan collected around Rs822 billion under the petroleum development levy, achieving more than 60 percent of the target for the fiscal year’s first six months. Meanwhile, rising tensions in the Middle East have pushed global oil prices higher, raising concerns about a possible increase in fuel prices in Pakistan. Officials estimate that the ex-refinery price of petrol in the country could increase by around Rs32 per litre by March 15. The petrol ex-refinery price is expected to rise from Rs153.50 to about Rs186.47 per litre. Similarly, the price of high-speed diesel is likely to increase by more than Rs50 per litre during the same period due to higher international oil prices. In the global market, the price of high-speed diesel is projected to increase from $93.02 to around $138 per barrel, while petrol prices are expected to rise from $79.14 to approximately $97.92 per barrel. Energy analysts say the government will face difficult decisions in the coming weeks as it balances fiscal commitments under the IMF programme with rising global fuel prices and domestic inflation concerns.