Pakistan Raises Petrol and Diesel Prices Under Daily Review
ISLAMABAD: The federal government increased the prices of petrol and high-speed diesel on Tuesday, announcing revised rates that will take effect across Pakistan from July 29. Petrol was raised by Rs1.63 per litre, while high-speed diesel became Rs1.55 per litre more expensive under the country’s new daily fuel-pricing system.
Following the latest adjustment, petrol will be sold at Rs335.81 per litre, compared with the previous rate of Rs334.18. High-speed diesel will now cost Rs388.38 per litre, up from Rs386.83, according to the notification issued by the Petroleum Division after calculations by the Oil and Gas Regulatory Authority.
The decision came only a day after the government reduced petrol by Re1 per litre while increasing diesel by Rs3.37. The rapid changes illustrate how motorists, transport operators and businesses are now being exposed more directly to fluctuations in international oil markets through the daily review mechanism.
Officials have said the revised system is intended to make domestic prices more responsive and transparent during a period of heightened volatility in global energy markets. Petroleum Minister Ali Pervaiz Malik earlier explained that Ogra would determine daily rates using international price trends rather than waiting for the fortnightly or weekly review cycles previously followed by the government.
The latest notification was issued against the backdrop of renewed tensions in the Persian Gulf and uncertainty surrounding major international supply routes. Global crude prices have experienced sharp movements as traders assess the risk of disruptions, higher transportation costs and potential restrictions affecting oil shipments from the Middle East.
Pakistan continues to collect substantial taxes and duties on petroleum products. The government is maintaining around Rs110 per litre in taxes and duties on petrol and approximately Rs96 per litre on high-speed diesel, making the retail price sensitive not only to international crude movements but also to domestic revenue requirements and exchange-rate pressures.
Fuel prices had risen dramatically earlier in the year after conflict involving Iran and the United States disrupted market expectations. Petrol reached a peak of Rs458.41 per litre in April after beginning its upward movement from around Rs266 in early March, while diesel climbed as high as Rs520.35 after previously standing near Rs281 per litre.
Although current rates remain below those peaks, the renewed increase will affect a wide range of consumers. Petrol is heavily used by motorcyclists, rickshaw drivers, car owners and small commercial vehicles, meaning even modest daily changes can add to household transport costs when accumulated over several weeks.
High-speed diesel has an even broader economic effect because it powers trucks, buses, agricultural machinery, industrial generators and some electricity-producing units. Higher diesel prices can increase freight and farming costs, potentially feeding into food prices, public transport fares and the cost of moving goods between cities and markets.
The daily pricing system has faced resistance from petroleum dealers, who have raised concerns about frequent operational changes and indicated that they may consider protest action. The government will now be under pressure to show that the mechanism delivers transparent calculations and protects consumers from delayed reductions when international prices fall, while the next notification will determine whether Wednesday’s increase marks a continuing upward trend.