The federal government announced on Friday an immediate increase in petrol and High-Speed Diesel (HSD) prices by Rs5.44 and Rs31.05 per litre respectively. These revised rates will be effective for three days, until July 20, reflecting the impact of higher import premiums and rising global prices triggered by renewed tensions between the US and Iran.
Following this adjustment, petrol is now priced at Rs316.15 per litre, while HSD costs Rs354.35 per litre. The Petroleum Division confirmed that the new prices took effect on July 18 (Saturday).
In a significant development, the recent hike comes after a period of volatility in domestic fuel prices. HSD prices have declined from a historic high of Rs520.35 per litre recorded on April 3. The upward trend began from Rs281 per litre following the outbreak of hostilities between the US and Iran on February 28. Similarly, petrol prices peaked at Rs458.41 on April 3, having risen from Rs266 per litre in early March.
Earlier on Friday, Petroleum Minister Ali Pervaiz Malik revealed that the cabinet and prime minister had resolved to transfer the responsibility of fuel pricing to the Oil and Gas Regulatory Authority (Ogra) for daily adjustments. This change aims to address the continuous fluctuations in international markets caused by renewed US-Iran conflict.
To enhance transparency, the minister stated that Ogra would publish international fuel rates used for price determination on its website, along with detailed explanations of the factors influencing retail prices at petrol stations. Previously, the government had been announcing weekly price revisions since early March, coupled with fuel conservation initiatives and targeted relief subsidies introduced in April to counter potential supply disruptions from the Middle East crisis.
The government currently collects around Rs105 per litre on petroleum products through customs duty, petroleum levy, climate support levy, and the inland freight equalisation margin. However, the All Pakistan Dealers Association has opposed the shift to daily pricing and plans to consider protests next week.
The price increases are expected to affect a broad segment of the population. Petrol is mainly used by private vehicles, small cars, rickshaws, and two-wheelers, impacting the middle and lower-middle classes directly. Meanwhile, the rise in HSD prices has a wider inflationary effect, as diesel is extensively used in transport, power generation, and large-scale generators.
Petrol and HSD remain the dominant revenue sources in the oil sector, with monthly sales ranging between 700,000 and 800,000 tonnes. This contrasts sharply with kerosene, which has a much smaller monthly demand of about 10,000 tonnes.
