Pakistan fuel price hike drives up cost of essential goods

Fuel prices in Pakistan have increased, with the Oil & Gas Regulatory Authority (OGRA) raising petrol by Rs3.81 per litre to Rs341.59 and diesel by Rs3.59 per litre to Rs368.29. These revised rates, effective from August 22, 2026, follow a decision by the Economic Coordination Committee (ECC) to also increase the dealers’ margin from Rs8.64 to Rs9.98 per litre.

The fuel hike is contributing to broader inflationary pressures. The Federal Bureau of Statistics reported a weekly inflation increase of 0.49%, bringing the annual rate to 9.66%. The rising cost of petroleum is impacting essential commodities; for instance, onion prices rose by 14.17% and chicken by 3.35%.

Additionally, food items such as ghee and cooking oil are seeing price surges due to increased transportation and freight costs. Grade-I ghee is now being sold between Rs595 and Rs600 per kilogram. While some items like eggs, tomatoes, and potatoes saw price decreases, the overall trend indicates rising costs for daily necessities, placing further strain on middle- and low-income households.