Petrol price up by Rs4.40, diesel by Rs3.62 per litre

Pakistan's government increased the prices of petrol and high-speed diesel (HSD) on Thursday, passing on the impact of volatile global oil markets exacerbated by renewed hostilities in the Persian Gulf. Petrol prices rose by Rs4.40 to Rs331.52 per litre, while HSD increased by Rs3.62 to Rs378.66 per litre.

The government continues to levy substantial taxes, charging Rs110 per litre on petrol and Rs96 on diesel. These new prices took effect on July 24. Diesel prices had previously peaked at Rs520.35 on April 3, while petrol reached its highest at Rs458.41 on April 3, following their upward trends that began in late February and early March respectively.

Petroleum Minister Ali Pervaiz Malik announced a shift towards daily fuel price adjustments, a departure from the previous weekly revisions. This change aims to reflect real-time fluctuations in international market prices, particularly amid potential oil supply disruptions stemming from the Middle East conflict. The government had previously implemented measures for fuel conservation and offered targeted relief subsidies in April.

The decision to adopt daily pricing, granting the Oil and Gas Regulatory Authority (Ogra) the responsibility to set prices based on international trends, has been met with resistance. The All Pakistan Dealers Association declared it would consider a protest plan against this new system. The price changes significantly impact the general public, as petrol is widely used in private transport and two-wheelers, while diesel powers the heavy transport sector, power plants, and large generators.

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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.