Pakistan Cuts Petrol by 75 Paisas as Diesel Rises Rs2.24
ISLAMABAD: The federal government revised petroleum prices for July 30, increasing high-speed diesel by Rs2.24 per litre while reducing petrol by 75 paisas. The latest adjustment takes the price of diesel to Rs390.62 per litre and lowers petrol to Rs335.06 per litre under Pakistan's recently introduced daily fuel-pricing system.
The Petroleum Division issued the revised rates on Wednesday night, making them applicable from Thursday. The announcement came only one day after petrol and diesel prices were raised by Rs1.63 and Rs1.55 per litre, respectively, demonstrating how rapidly domestic fuel rates are now responding to international market movements.
Pakistan began reviewing petroleum prices daily in July after renewed instability in the Middle East caused sharp fluctuations in global crude oil and refined-product markets. Under the mechanism, authorities calculate domestic prices using recent international rates while also considering exchange-rate movements, freight charges and import expenses.
The government says daily adjustments allow changes in global costs to reach the domestic market more quickly than the previous weekly or fortnightly systems. Petroleum Minister Ali Pervaiz Malik previously said the Oil and Gas Regulatory Authority had been assigned responsibility for determining prices according to international market trends.
The modest petrol reduction may provide limited relief to motorists, motorcyclists, rickshaw operators and households that rely on small vehicles. However, the diesel increase could have a broader inflationary effect because the fuel is extensively used by freight transporters, agricultural machinery, industrial units, power plants and large electricity generators.
Higher diesel costs can raise the expense of moving food, construction materials and consumer goods between cities and rural markets. Transport operators may eventually pass part of the additional burden to businesses and passengers, potentially affecting retail prices and household budgets even when petrol records a small decline.
Fuel prices have been revised repeatedly during July, with petrol recording a cumulative increase of more than Rs20 per litre over the month. The volatility has generated concern among consumers and businesses seeking predictable transport and production costs, while dealers have criticised the shift to daily pricing and indicated that protest options could be considered.
Pakistan remains heavily dependent on imported petroleum and does not maintain strategic reserves capable of meeting national demand for several months. Supplies are primarily managed through stocks held by oil marketing companies and refineries, along with imported cargoes, leaving domestic prices sensitive to shipping disruptions, regional conflict and changes in the rupee's value.
Petrol and high-speed diesel are also major sources of government revenue because their combined monthly sales substantially exceed those of other petroleum products. Duties, levies, distribution margins and freight costs form an important part of the final retail rate, making each price decision significant for both public finances and consumers.
Future revisions will depend on global oil prices, currency movements and the cost of securing imported supplies. With rates now reviewed frequently, consumers and transport businesses face continued uncertainty, while the government will be under pressure to ensure that international reductions are passed on as promptly as increases.