Oil Could Reach $120, Raising Pressure on Petrol, Electricity and Essentials in Pakistan
Mian Nadeem
Published September 09, 2026 | 11:30 PM
Continued increases in petroleum product prices have heightened fears of a new wave of inflation in Pakistan.
After crude oil prices in the global market crossed $100 per barrel, concerns have grown over further increases in petroleum product prices and inflation in Pakistan. Rising tensions in the middle East and the situation in the Strait of Hormuz have created concerns about global oil supplies, while the possibility of crude oil reaching $110 to $120 per barrel is being discussed in the market.
For Pakistan, an increase in global oil prices could directly affect the import bill, foreign exchange requirements and petroleum product prices. Government sources said that if the sustained rise in global prices continues, the government could face difficult decisions in determining petroleum prices in the coming period.
Higher crude oil prices could lead to increases in petrol and diesel rates, higher transportation and freight costs, and additional pressure on food prices. Meanwhile, rising energy costs could also affect power-generation expenses and fuel adjustment, potentially resulting in higher electricity bills for consumers.
According to economists, the greatest risk for Pakistan would emerge if crude oil approached $120 per barrel and remained at elevated levels for several weeks. Experts said expensive oil, a rising import bill and pressure on the rupee could become three major challenges for Pakistan’s economy at the same time.
The government’s real test will be how to maintain a balance between petroleum prices, inflation and public revenue without passing the full burden of global prices on to the people. The latest situation has once again raised the question of how much pressure a rise in global oil prices to $120 could place on the petrol costs, electricity bills and monthly budgets of ordinary Pakistanis.
