Pakistan likely to increase petrol by more than Rs100 per litre next week

Federal government assures IMF to adjust petroleum prices in accordance with the global oil rates  

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-April 2^nd, 2026) The International Monetary Fund has raised concerns over the continuation of subsidies on petroleum products, with the Federal government assuring the lender that fuel prices will be aligned with international market rates.

The sources in the Ministry of Finance said that the petroleum prices are expected to increase by more than Rs100 per litre from next week following the government’s commitment to the IMF. The assurance came after the Fund expressed reservations over additional subsidies on fuel.

Sources said the government has agreed to adjust petroleum prices in accordance with global oil rates to address the IMF’s concerns.

It was further revealed that the prime minister had earlier rejected a proposal to increase petrol prices by Rs95 per litre and also blocked a suggested hike of Rs203 per litre in diesel prices.

To keep prices unchanged, the government compensated oil companies through funds allocated from the development budget.

The officials said the prime minister had directed authorities to take up the matter with the IMF. Out of Rs100 billion diverted from the Public Sector Development Programme (PSDP), Rs56 billion has already been utilised to provide subsidies during the past week. Further use of PSDP funds could help limit the extent of the expected increase.

The federal government will take a final decision on revising petroleum prices after consultation with the provinces.

Meanwhile, global oil prices remained between $106 and $108 per barrel last week and continue to hover within the same range in the international market.