The federal government on Friday announced a Re1 per litre reduction in petrol prices while increasing the price of high-speed diesel (HSD) by Rs3.77 per litre, reflecting fluctuations in international oil markets following renewed tensions in the Persian Gulf.
According to a notification issued by the Petroleum Division, the revised prices will take effect from July 28 (Tuesday).
New Fuel Prices
Under the latest revision:
- Petrol: Reduced by Re1 to Rs334.18 per litre
- High-Speed Diesel (HSD): Increased by Rs3.77 to Rs386.83 per litre
The government continues to levy substantial taxes and duties on petroleum products, charging Rs110 per litre on petrol and Rs96 per litre on high-speed diesel.
Impact of Global Oil Prices
The latest adjustment comes amid continued volatility in global crude oil prices following renewed hostilities in the Persian Gulf.
Since the outbreak of the US-Iran conflict on February 28, fuel prices experienced sharp increases before gradually easing in recent months.
HSD had reached a record Rs520.35 per litre on April 3, after rising from Rs281 per litre at the start of the conflict.
Similarly, petrol prices peaked at Rs458.41 per litre on April 3, having climbed from Rs266 per litre in early March.
Daily Fuel Price Mechanism
Earlier, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be reviewed and determined on a daily basis instead of weekly.
Under the new mechanism, the Oil and Gas Regulatory Authority (Ogra) has been authorised to adjust petroleum prices daily in line with international market movements.
The government says the change is intended to ensure quicker responses to fluctuations in global oil prices and potential supply disruptions.
Dealers Oppose Daily Pricing
The decision to introduce daily fuel pricing has been opposed by the All Pakistan Dealers Association, which has rejected the new mechanism and indicated it is considering protest measures.
Impact on Consumers
Petrol is primarily used by private motorists, motorcycles, rickshaws and small vehicles, meaning any change in its price directly affects middle- and lower-income households.
High-speed diesel is widely consumed by the heavy transport sector, agricultural machinery, power generation and industrial operations. Changes in diesel prices often influence transportation costs and contribute to broader inflationary pressures.
Petrol and HSD remain the country’s largest-selling petroleum products, with combined monthly sales ranging between 700,000 and 800,000 tonnes, significantly higher than products such as kerosene.
