Business Recorder
KARACHI: A sharp and sustained surge in global oil prices driven by geopolitical tensions has triggered widespread fuel price shocks, supply disruptions, and emergency policy responses across the world, while Pakistan has remained relatively stable compared to many regional and global economies, according to a report released by the Ministry of Information and Broadcasting. The report, based on international pricing data and country-level comparisons, underscores the scale and speed of the ongoing energy crisis, highlighting unprecedented volatility in petroleum markets during March and early April 2026. According to the report, international petroleum prices—particularly diesel—recorded an extraordinary surge within a matter of weeks. Diesel prices rose from around $88 per barrel in the second fortnight of February to $132 in the first week of March, marking a sharp 50 percent increase. The upward trajectory continued, with prices climbing to USD174 per barrel in the second week (+32 percent), USD202 in the third week (+16 percent), and USD218 in the fourth week (+8 percent). By early April, diesel prices had peaked at approximately USD238 per barrel, representing a cumulative increase of more than 170 percent over the period. Petrol prices also exhibited significant volatility, rising from around USD74 per barrel equivalent in late February to USD95 (+28 percent) in the first week of March, and further to USD122 (+28 percent) in the second week. Prices reached USD138 in the third week before easing slightly to USD130 (-6 percent) in the fourth week and stabilising around USD128 in early April. Meanwhile, global crude benchmarks showed mixed trends. Brent crude futures rose from USD70 per barrel in late February to USD84 (+19 percent) in early March and peaked at USD106 in mid-March before moderating. Dubai crude followed a similar trajectory, rising sharply to USD159 per barrel in the third week of March before declining to $117 by early April. The report highlights that the steepest price increases occurred during the first half of March, reflecting immediate market reactions to geopolitical developments, followed by partial corrections toward the end of the month. The Ministry’s analysis shows that Asian countries experienced the most severe fuel price increases in the aftermath of the crisis. Diesel price hikes reached as high as 82 percent in certain markets, with several others recording increases in the range of 50–70 percent. Countries such as Vietnam, Malaysia, and Australia saw significant increases, while developed economies including the United States, Germany, and France also faced notable upward pressure on fuel prices. Even traditionally stable energy markets reported double-digit increases, reflecting the global nature of the crisis. Despite the global surge, Pakistan’s retail fuel prices were reported at approximately USD1.2 per litre for diesel and USD1.1 per litre for petrol, placing the country in a relatively moderate position compared to several regional peers. The report compares Pakistan’s pricing with countries such as Sri Lanka, where diesel and petrol prices were around USD1.3 and USD1.2 per litre respectively, and the Philippines, where prices were significantly higher at USD1.4 and USD1.7 per litre. Bangladesh and Myanmar, while having slightly lower price levels, experienced much sharper percentage increases. Quoting the analysis, the Ministry of Information and Broadcasting claimed that Pakistan has so far managed to maintain relative price stability compared to global trends, despite being an import-dependent energy market. Sri Lanka implemented a comprehensive fuel rationing system through a digital fuel pass mechanism, limiting weekly fuel purchases to 15 litres for private vehicles and 5 litres for motorcycles. The country also imposed energy conservation measures, including temperature controls and public holidays. Myanmar introduced nationwide rationing based on vehicle number plates, enforced remote working for public officials, and tightened anti-hoarding regulations amid widespread shortages. The Philippines declared a national emergency to manage fuel and essential supplies, introduced a four-day workweek, and enforced strict distribution controls. It also secured emergency fuel procurement to cover short-term demand. Bangladesh adopted a combination of conservation and administrative measures, including closure of fertilizer plants, electricity-saving initiatives, and efforts to secure external financing support. Other countries implemented diverse measures such as early closure of commercial activities, reduction in fuel taxes, blending mandates, and even military oversight of fuel depots to prevent hoarding and ensure equitable distribution. The Information Ministry emphasised that the global benchmarking exercise demonstrates the importance of timely policy interventions, supply chain management, and strategic planning in mitigating the impact of external shocks. It added that Pakistan’s current position reflects a relatively balanced policy approach, aimed at managing price volatility while ensuring supply continuity and protecting consumers from extreme fluctuations. Analysts note that while Pakistan has so far remained relatively insulated compared to many countries, continued volatility in global oil markets poses ongoing risks, particularly for import-dependent economies, underscoring the need for prudent energy management and diversification strategies. Copyright Business Recorder, 2026
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