ISLAMABAD: The federal government on Tuesday increased the prices of petrol and high-speed diesel (HSD) by Rs4.93 and Rs7.15 per litre, respectively, under Pakistan’s newly introduced daily fuel pricing mechanism.
According to a notification issued by the Petroleum Division, the price of petrol has been raised to Rs320.73 per litre, while high-speed diesel (HSD) will now cost Rs367.21 per litre. The revised prices took effect from July 22.
The latest increase comes amid renewed volatility in international oil markets following escalating tensions in the Middle East. Officials said fresh hostilities involving Iran and the United States, along with concerns over a possible disruption of shipping through the Strait of Hormuz, have pushed global crude prices higher and raised fears of supply disruptions.
The government recently replaced its weekly fuel price review with a daily pricing mechanism, under which petroleum prices are determined using a seven-day rolling average of international market prices. Petroleum Minister Ali Pervaiz Malik said the decision was approved by the prime minister and the federal cabinet, with the Oil and Gas Regulatory Authority (OGRA) now responsible for updating fuel prices daily to ensure consumers receive the immediate impact of global price movements.
Before Tuesday’s increase, the government had revised fuel prices for a single day, raising HSD by Rs5.71 per litre while reducing petrol by 35 paisas. The shift to daily pricing is intended to align Pakistan’s fuel pricing system with international standards and improve transparency.
The new mechanism, however, has drawn criticism from the All Pakistan Dealers Association, which rejected the move and said it would discuss a protest strategy during the week.
Petrol and diesel prices have remained highly volatile in recent months. Diesel, which had climbed from Rs281 per litre to a record Rs520.35 on April 3 during heightened geopolitical tensions, has since eased to Rs367.21 per litre. Petrol similarly rose from Rs266 per litre in early March to a peak of Rs458.41 on April 3 before declining to the current level of Rs320.73.
Petrol is primarily used by motorcycles, cars, rickshaws and other private vehicles, making price changes particularly significant for middle- and lower-income households. High-speed diesel is widely consumed by the transport, agriculture and industrial sectors, meaning increases in its price can raise freight costs, agricultural input expenses and overall inflation.
Officials also noted that petrol demand has increased following restrictions on the use of indigenous gas in Punjab. Petrol and HSD remain the country’s largest-selling petroleum products, with combined monthly sales estimated at 700,000 to 800,000 tonnes, making them key contributors to government petroleum revenue.
