Fuel prices go up again as petrol hits Rs335.81, diesel Rs388.38

The federal government has raised petrol prices by Rs1.63 per litre and High-Speed Diesel (HSD) prices by Rs1.55 per litre on Tuesday, passing on the impact of global oil market fluctuations following flared hostilities in the Persian Gulf earlier in the month.

Under the updated rates, petrol costs Rs335.81 per litre, while HSD sells for Rs388.38 per litre. The government continues to levy Rs110 per litre in taxes and duties on petrol and Rs96 per litre on diesel. According to the Petroleum Division notification, the new prices take effect on July 29.

Fuel rates remain below peaks recorded earlier in the year. HSD reached Rs520.35 per litre on April 3, climbing from Rs281 per litre after conflict between the United States (US) and Iran broke out on February 28. Petrol reached Rs458.41 per litre on April 3 after beginning an upward trend from Rs266 per litre in the first week of March.

Earlier, Petroleum Minister Ali Pervaiz Malik announced that “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.”

The government previously instituted weekly price revisions starting in March alongside fuel conservation measures, followed by targeted relief measures for subsidised fuel in April.

The minister stated that “the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends.”

The daily pricing framework encountered opposition from industry representatives. The All Pakistan Dealers Association rejected the daily pricing decision, stating that the organization “would consider a protest plan” during the week.

Fuel price adjustments affect different segments of the economy. Middle-class and lower-middle-class commuters feel petrol price changes because two-wheelers, rickshaws, and small private vehicles rely on petrol. High-speed diesel price changes impact the broader public, as the fuel runs heavy transport vehicles, power plants, and large generators.

Petrol and high-speed diesel generate primary sales volume for the sector, with monthly demand ranging between 700,000 and 800,000 tonnes, compared to 10,000 tonnes of monthly demand for kerosene.