Petroleum product consumption fell by 7% year-on-year and 6% month-on-month in April.
Karachi: Following the attacks on Iran by the United States and Israel, global petroleum supply chains were disrupted. The dual blockade of the Strait of Hormuz by both the US and Iran further worsened the situation. As a result, petroleum product prices surged worldwide during April. Pakistan also witnessed a massive increase in fuel prices.
During April, petrol prices rose by 74% to reach PkR458 per liter, while diesel prices jumped by 96% to PkR520 per liter. Due to the ongoing Gulf tensions, Pakistan has been reviewing fuel prices on a weekly basis. Consequently, in the last week of April, petrol prices declined to PkR393 per liter, while diesel prices fell to PkR380 per liter.
The unprecedented increase in prices also affected fuel consumption. Total petroleum sales in April 2026 stood at 1.36 million tons, down 7% year-on-year and 6% month-on-month.
Petrol sales amounted to 615,000 tons, while diesel sales were recorded at 550,000 tons. HOBC witnessed the sharpest decline in consumption, with sales plunging 87% to only 4,000 tons.
To shield the public from the impact of soaring fuel prices, the government provided subsidies worth PkR129 billion from February to April. The government has also announced continuation of subsidies in May. However, the IMF has advised the government against providing subsidies.
The provincial governments of Punjab and Sindh provided subsidies to motorcyclists, which offered some support to petrol sales.
Among industrial fuels categorized as non-retail fuels, furnace oil consumption recorded an increase for the second consecutive week, rising to 137,000 tons on a yearly basis — the highest level recorded in the last 27 months.
