Petrol, diesel prices raised for next three days under new daily review system

ISLAMABAD: The federal government on Friday increased the prices of petrol and high-speed diesel for the next three days, citing the impact of changes in global oil markets amid renewed hostilities in the Persian Gulf.

According to a notification issued by the Petroleum Division, petrol has gone up by Rs3.66 per litre and high-speed diesel by Rs4.80 per litre. Following the revision, petrol is now priced at Rs335.18 per litre, while high-speed diesel will cost Rs383.46 per litre. The notification said the revised rates would remain in force for the next three days.

The government is charging a total of Rs110 per litre in taxes and duties on petrol and Rs96 per litre on diesel.

Daily pricing mechanism

Earlier, Petroleum Minister Ali Pervaiz Malik had announced that fuel prices would now be determined on a daily basis because of fluctuations in international market prices after renewed hostilities between Iran and the United States. He said the cabinet and the prime minister had decided to assign the Oil and Gas Regulatory Authority the responsibility of setting fuel prices each day in line with international market trends.

Before this change, the government had been issuing weekly fuel price revisions since early March. Those adjustments were introduced alongside fuel conservation measures amid concerns over possible oil supply disruptions linked to the conflict in the Middle East. In April, the federal government also announced targeted relief measures to provide subsidised fuel.

Recent price trend and market impact

The latest increase comes after sharp swings in domestic fuel prices during recent months. The price of high-speed diesel had climbed from Rs281 per litre after the US-Iran war broke out on February 28 and later reached a peak of Rs520.35 on April 3. Petrol had also risen from Rs266 in the first week of March and touched a high of Rs458.41 on April 3.

The All Pakistan Dealers Association has rejected the move to daily pricing and said it would consider a protest plan this week.

Petrol is widely used in private transport, small vehicles, rickshaws and motorcycles, meaning price changes directly affect middle- and lower-middle-income households. Diesel prices also have broader consequences because the fuel is mainly used in heavy transport, power plants and large generators.

Petrol and high-speed diesel remain the main petroleum revenue earners, with monthly sales of around 700,000 to 800,000 tonnes, compared with about 10,000 tonnes in monthly kerosene demand.