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ISLAMABAD: The Govt has increased petrol and high-speed diesel prices on Wednesday under its new daily pricing mechanism, citing volatility in global oil markets driven by renewed hostilities in the Persian Gulf.
The Govt on Wednesday raised the prices of petrol and high-speed diesel (HSD) as it passed on the impact of higher international oil prices triggered by renewed geopolitical tensions in the Persian Gulf.
According to a notification issued by the Petroleum Division, the price of petrol was increased by Rs6.39 per litre to Rs327.12, while high-speed diesel was raised by Rs7.83 per litre to Rs375.04. The revised prices will take effect from July 23.
The increase comes under Pakistan’s newly introduced daily fuel pricing mechanism, replacing the earlier weekly review system, as authorities seek to respond more quickly to fluctuations in international oil markets following renewed hostilities between Iran and the United States.
Petroleum Minister Ali Pervaiz Malik has said the federal cabinet empowered the Oil and Gas Regulatory Authority (OGRA) to determine petroleum prices on a daily basis in line with global market trends. The government says the move is intended to improve price transparency and reduce delays in passing international price movements to domestic consumers.
The decision has drawn opposition from petroleum dealers. The All Pakistan Petroleum Pump Owners Association (APPPOA), which had announced a nationwide strike over the daily pricing mechanism and dealer margins, suspended its protest for two weeks earlier on Wednesday after the government assured stakeholders their concerns would be addressed through consultations.
Fuel prices in Pakistan have remained highly volatile since regional tensions escalated earlier this year. High-speed diesel reached a record Rs520.35 per litre on April 3 after rising from around Rs281 per litre following the outbreak of the Iran-U.S. conflict in late February. Petrol also climbed to a record Rs458.41 per litre in early April from about Rs266 per litre at the beginning of March before easing in subsequent months.
The government had introduced targeted fuel subsidies in April to shield vulnerable households from surging energy costs while also implementing fuel conservation measures amid concerns over potential supply disruptions in the Middle East.
Petrol is primarily consumed by private vehicles, motorcycles, rickshaws and small commercial transport, making price changes particularly significant for middle- and lower-income households. High-speed diesel is widely used by heavy transport, agriculture, power generation and industry, meaning higher diesel prices often feed into freight charges and broader inflation.
Petrol and high-speed diesel remain the country’s largest-selling petroleum products, with combined monthly sales of around 700,000 to 800,000 tonnes, making them a major source of government revenue through petroleum-related taxes and levies.
