Iran attacks and Hormuz Strait closure disrupted global oil supply chains. About 20% of crude passes through this route. Consequently, international oil prices spiked sharply. Neighboring countries felt the largest impact as petrol and diesel prices surged.
Pakistan Faces Extreme Fuel Price Hike
Pakistan saw the most severe increase in fuel costs. Petrol rose nearly 64% in three months, while diesel jumped 61%. Previously, petrol cost 266 Pakistani rupees per litre; now it reached 458.86 rupees. Diesel moved from 266 to 520.42 rupees per litre.
Moreover, the Petroleum Minister announced a 42.7% petrol and 54.9% diesel hike, alarming citizens nationwide. Prices currently sell at $1.64 per litre petrol and $1.86 per litre diesel. Converted to Indian rupees, petrol costs ₹157.34 and diesel ₹178.45 per litre.
Due to this crisis, Pakistan implemented a four-day workweek and closed several schools to conserve energy.
Nepal Sees South Asia’s Highest Petrol Costs
Nepal now sells the most expensive petrol in South Asia. Within April 2026, authorities raised oil prices four times. Petrol increased from 137 to 219 Nepalese rupees per litre in one month. In US dollars, petrol costs $1.48 per litre, roughly ₹123.58. Transport consumes about 60% of Nepal’s imported fuel, raising goods prices sharply.
Sri Lanka Implements Fuel Rationing
Sri Lanka also struggles with rising fuel prices. Diesel increased 26.1% from 303 to 382 LKR per litre. Petrol surged to 398 LKR per litre, roughly ₹108.55. Consequently, the government rationed fuel, restricted public events, and closed schools to reduce consumption.
Bangladesh Faces Rising Pressure
Bangladesh initially tried absorbing higher costs. However, rising subsidies forced eventual petrol and diesel hikes of 10-16% in April 2026. Crude oil prices rose above $100 per barrel post-Iran conflict, up from $70-$75 earlier. Bangladesh imports roughly 95% of its oil. Citizens faced empty pumps and long queues.
India Keeps Fuel Price Increase Limited
Meanwhile, India remained relatively stable. Till May 15, 2026, petrol rose ₹3.14 per litre, roughly 3.4%, while diesel increased ₹3.11, about 3.6%.
The government and public sector oil companies absorbed most global price shocks. Therefore, citizens avoided drastic fuel cost burdens. Experts consider India’s control over fuel prices during this global crisis a significant relief.
