Pakistan’s Fuel Import Bill Rises by $1.3 Billion Amid Higher Global Energy Costs
Petroleum imports increase nearly 20% from March to July, adding pressure on Pakistan’s foreign exchange position and inflation outlook
ISLAMABAD: Pakistan’s petroleum import bill increased by around $1.3 billion between March and July 2026 compared with the same period last year, as higher international energy prices and disruptions affecting the Strait of Hormuz increased the cost of fuel and LNG imports.
According to official trade data, Pakistan’s petroleum imports during the five-month period stood at approximately $7.7 billion to $7.9 billion, compared with about $6.6 billion during the corresponding period of 2025.
This represents an increase of nearly 20% year-on-year.
Petroleum Import Costs Rise
Pakistan’s monthly petroleum import bill fluctuated significantly during the period.
The bill increased to around $1.79 billion in April, compared with approximately $1.35 billion a year earlier. Import costs remained elevated in May before reaching nearly $1.91 billion in June.
The situation improved in July, when the monthly petroleum import bill declined to around $1.28 billion.
Despite the July decline, the overall March-July import bill remained considerably higher than the previous year.
Higher LNG prices also contributed to the increase. LNG imports alone accounted for around $221.5 million of Pakistan’s petroleum-group imports in June.
Strait of Hormuz Disruptions Add to Costs
Disruptions affecting energy shipments through the Strait of Hormuz have contributed to higher crude oil and LNG prices, while freight, insurance and other transportation costs have also increased.
The latest increase comes after Pakistan’s petroleum-group imports had already reached approximately $16.86 billion during FY2025-26, representing a 5.76% increase from the previous year.
Crude oil imports also recorded significant growth during the fiscal year.
Regional Energy Costs Under Pressure
The increase in energy costs has affected several South Asian economies.
Data cited from the Centre for Research on Energy and Clean Air (CREA) indicates that the global oil and gas import bill increased substantially during the six-month period from March to August 2026.
India has also faced higher energy import costs. Its crude oil import bill increased significantly during April-July, mainly because of higher average crude prices despite relatively stable import volumes.
India relies heavily on imported crude oil, making its economy particularly sensitive to changes in international energy prices and disruptions to major supply routes.
Bangladesh has faced similar challenges. Its petroleum-related imports increased substantially during FY2025-26, while higher LNG prices added further pressure on the country’s energy budget.
Impact on Pakistan’s Economy
For Pakistan, the additional $1.3 billion spent on petroleum imports represents a considerable foreign exchange requirement.
Higher fuel and LNG prices can also affect transportation, electricity generation and industrial production costs. These increases may eventually place additional pressure on consumer prices and inflation.
The situation highlights the importance of stable energy supplies and effective management of foreign exchange resources.
For countries across South Asia, developments in global energy markets remain closely linked to import costs, inflation, trade balances and broader economic stability.
