The government on Wednesday raised petrol prices by Rs6.39 and high-speed diesel (HSD) by Rs7.83 per litre to address the impact of volatile global markets driven by renewed conflict in the Persian Gulf.
Post-adjustment, petrol is now priced at Rs327.12 per litre, while HSD costs Rs375.04. The revisions take effect on July 23 (Thursday), as per a notification from the Petroleum Division.
In a recent development, the All Pakistan Petroleum Pump Owners Association (APPPOA) delayed its planned nationwide strike by two weeks following discussions with the petroleum minister.
The association had initially announced the strike after talks with the government over daily fuel pricing collapsed.
Diesel prices have declined from a peak of Rs520.35 observed on April 3. Rising from Rs281 per litre after the US-Iran war began on February 28, HSD has seen volatile fluctuations.
Petrol reached its highest level of Rs458.41 on April 3, escalating from Rs266 at the start of March.
Petroleum Minister Ali Pervaiz Malik announced that fuel prices will now be adjusted daily in response to international market volatility caused by renewed tensions between Iran and the US.
The government had previously implemented weekly fuel price changes since March, alongside fuel conservation measures amid concerns over potential supply disruptions from Middle East conflicts. In April, targeted relief measures were introduced to offer subsidized fuel.
The minister emphasized that the cabinet and Prime Minister have mandated the Oil and Gas Regulatory Authority (Ogpa) to determine fuel prices daily based on global market trends.
The daily pricing model faced rejection from the All Pakistan Dealers Association, which warned of initiating a protest plan this week.
Petrol, primarily used in private transport, small vehicles, rickshaws, and motorcycles, significantly affects the middle and lower-middle classes.
Similarly, diesel price changes impact the broader public, as it is crucial for heavy transport, power plants, and large generators.
Petrol and HSD are major revenue contributors, with monthly sales ranging between 700,000 to 800,000 tonnes, compared to a mere 10,000 tonnes of monthly demand for kerosene.