Govt raises petrol by Rs4.93 and diesel by Rs7.15 per litre

ISLAMABAD: The federal government has increased the price of petrol by Rs4.93 per litre and high-speed diesel by Rs7.15 per litre, passing on the effect of shifting international oil prices amid renewed hostilities in the Persian Gulf.

According to a notification issued by the Petroleum Division, the new rates will take effect on July 22. Following the revision, petrol will cost Rs320.73 per litre, while high-speed diesel will be priced at Rs367.21 per litre.

Daily pricing mechanism

Earlier, Petroleum Minister Ali Pervaiz Malik had announced that petroleum prices would now be determined on a daily basis because of volatility in international markets after renewed tensions between Iran and the United States. Since early March, the government had been making weekly price adjustments along with fuel conservation measures in view of possible supply disruptions linked to the Middle East conflict.

The minister said the cabinet and the prime minister had decided to authorise the Oil and Gas Regulatory Authority to set fuel prices each day in line with global market movements. In April, the federal government had also announced targeted relief measures to provide subsidised fuel.

Price trend and public impact

The latest increase comes after a period of sharp fluctuations in domestic fuel prices. Diesel has fallen from its peak of Rs520.35 per litre recorded on April 3, after climbing from Rs281 per litre when the US-Iran war began on February 28. Petrol had earlier reached Rs458.41 per litre on April 3 after rising from Rs266 in the first week of March.

The move has drawn opposition from the All Pakistan Dealers Association, which rejected the daily pricing system and said it would consider a protest plan during the week.

Petrol is primarily used by private vehicle owners, motorcyclists, rickshaw drivers and small transport operators, meaning changes in its price directly affect middle- and lower-middle-income households. Diesel prices also have a broad impact because the fuel is widely used in heavy transport, power plants and large generators. Petrol and high-speed diesel remain the main revenue-generating petroleum products, with monthly sales of around 700,000 to 800,000 tonnes, compared with monthly kerosene demand of about 10,000 tonnes.