Pakistan Raises Petrol and Diesel Prices Amid Global Market Volatility

Pakistan's government has increased the prices of petrol and high-speed diesel (HSD) to reflect global market fluctuations, driven by renewed regional hostilities in the Persian Gulf. The price of petrol has risen by Rs6.39 per liter, bringing the new price to Rs327.12. High-speed diesel will now cost Rs7.83 more, reaching Rs375.04 per liter.

These new prices, effective July 23, come after a period of negotiation between the government and the All Pakistan Petroleum Pump Owners Association (APPPOA). The association had initially called for a nationwide strike but deferred it for two weeks following discussions with the petroleum minister. Earlier, the APPPOA announced the strike after failing to reach an agreement with the government on daily petroleum pricing.

Fuel prices have seen significant volatility. Diesel prices peaked at Rs520.35 on April 3, having started their rise from Rs281 per liter after the US-Iran conflict began on February 28. Petrol reached its highest at Rs458.41 on April 3, after beginning an upward trend from Rs266 in the first week of March.

Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be fixed daily due to international market volatility. Previously, the government had implemented weekly revisions since early March, alongside measures to conserve fuel amid potential oil supply disruptions from the Middle East conflict. The government had also introduced targeted relief measures for subsidized fuel in April. The Oil and Gas Regulatory Authority (Ogra) is now responsible for setting daily fuel prices based on international market trends, a decision supported by the cabinet and the prime minister. However, the All Pakistan Dealers Association rejected the daily pricing decision and is considering protest plans.

The price changes significantly impact the public. Petrol is primarily used in private transport, affecting middle and lower-middle-class households. Diesel prices influence the broader public, as it powers heavy transport, power plants, and large generators. Both petrol and HSD are major revenue sources for the government, with substantial monthly sales.

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fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.