The situation of petroleum prices and supply in India’s neighboring countries is quite tense. Global oil and gas supply has been disrupted due to the impact of the Strait of Hormuz due to the Iran-America-Israel war, which is directly impacting the neighboring countries. India’s neighboring countries include countries like Pakistan, China, Bangladesh, Nepal, Sri Lanka, Bhutan and Maldives.
Petrol and diesel prices rocket in Pakistan
The prices of petrol and diesel have increased very rapidly in Pakistan. According to Dawn News, from March 7, 2026, the government has increased the price of petrol to Rs 321.17 per liter and high-speed diesel to Rs 335.86 per liter. This is a huge increase of Rs 55 per liter, which is almost 20% up. The reason for this has been said to be the increase in oil prices due to the war in the Middle East. In all small and big cities like Karachi, Islamabad and Lahore, common people are standing in long queues at petrol pumps. Inflation is being affected due to increase in transport costs. Pakistan has described this as the highest increase among 14 countries.
Pakistani PM Shahbaz Sharif, while addressing the nation on Monday night, said that America-Israel’s war on Iran has created a global oil crisis, due to which the government has taken strict steps. These include implementing the rule of working for four days for all government offices, i.e. from Monday to Thursday. There will be additional holiday on Friday, but this will not apply to the bank.
It costs about 29 yuan more to fill the tank in China.
Oil prices are skyrocketing in China, which is directly impacting petrol and diesel. The National Development and Reform Commission (NDRC) has made the biggest increase in the retail fuel price cap on March 9, 2026, which is the highest since March 2022. According to the NDRC, the retail price cap of gasoline (petrol) has been increased by 695 yuan ($100.46) per metric ton and that of diesel by 670 yuan ($96.84) per metric ton. These changes have come into effect from March 10, 2026. Due to this, on average 92-octane gasoline has become costlier by 0.55 yuan per liter, 95-octane by 0.58 yuan per liter, and diesel by 0.57 yuan per liter. Filling a 50 liter tank costs 27-29 yuan extra.
Big crisis on fuel supply in Bangladesh
Bangladesh’s new government of Tariq Rahman has imposed fuel rationing from March 6-8 to stop panic buying. According to Reuters report, cars are getting 10 liters of petrol per day, motorcycles are getting 2 litres, trucks and buses are getting more but limited petrol and diesel. Petrol price is stable at Tk 116 per litre, diesel at Tk 100 per litre, but due to supply constraints there are reports of long queues at stations and overnight waits. Bangladesh imports 95% of the fuel, hence the delay is being caused by the war. India has sent 5,000 tonnes of diesel through the Friendship Pipeline and a total import of 2.80 lakh tonnes has been finalized so that there is no shortage in March. But the situation is tight due to panic buying.
Petrol and diesel prices did not increase much in Nepal
In Nepal’s capital Kathmandu, petrol is being sold at NPR 157 per liter and diesel at NPR 142 per liter. According to NOC Nepal, oil prices have increased slightly (about 0.03 dollar per liter), but not much. Nepal imports most of the fuel from India, hence it is benefiting from India’s stability. But due to increase in global prices, transportation costs are being affected. There are no major rationing or shortage reports.
Oil prices increased slightly in Sri Lanka
The price of petrol in Sri Lanka is around LKR 340 per liter (95 octane) and diesel is around LKR 279 per liter. There has been a slight increase in the prices of petrol in Sri Lanka, i.e. by $ 0.01 per liter. But the market price is slightly less than the formula. Not a major crisis, but there is pressure on transport and economy due to global crisis.
No major change in prices in Bhutan and Maldives
Diesel in Bhutan is INR 61.69 per liter (about 70 BTN), which is dependent on imports from India. Prices are also high in Maldives but specific March 2026 data did not show much change. There is stability in both the countries due to Indian supplies.
Overall, Pakistan, China and Bangladesh are the most affected, where prices rose sharply and supplies were rationed. Prices increased in Nepal and Sri Lanka but supply is fine. India has kept prices stable by increasing domestic production and diversifying imports from Russia and America, but the impact of the war on its neighbors is clearly visible. Oil price is above $100 per barrel, so further pressure may increase.
