The federal government has reduced petrol and High-Speed Diesel (HSD) prices by Rs3.19 and Rs1.50 per litre, respectively.
A notification issued by the Ministry of Petroleum set the price of petrol at Rs329.82 per litre and high-speed diesel at Rs382.36 per litre for Aug 7.
The revision follows an increase of Rs4.45 in petrol and a decrease of Rs2 in high-speed diesel announced on Aug 6.
On July 17, the government introduced a daily price review mechanism to align domestic rates with international market movements amid hostilities in the Middle East. Daily rates are calculated using a seven-day average of international market prices.
Data from the Pakistan Economic Survey 2024-25 indicates that petroleum products remain among the largest import categories in Pakistan.
Domestic refineries cover a portion of total demand, leaving the rest to be fulfilled through imported crude oil and refined products.
Higher global crude prices directly inflate Pakistan’s import bill, strain foreign exchange reserves and push domestic inflation higher.
The government previously controlled fuel prices through subsidies and price interventions. While those policies provided temporary relief to consumers, they created fiscal obligations.
The price reduction coincided with a $3 per barrel surge in global crude prices on Thursday after reports that an Iranian parliamentary committee reviewed legislation to restrict US and Israeli vessels in the Strait of Hormuz.
Brent crude futures rose by $3.09 to $82.54 a barrel, while US West Texas Intermediate (WTI) futures increased by $2.49 to $77.71.
