Petrol price increases to Rs396.65 as diesel gets cheaper

The latest move will push petrol to Rs396.65 per litre, while high-speed diesel (HSD) will cost Rs394.94 per litre.

The new prices were announced by the federal government following movements in international oil markets. The revised rates will remain effective for October 8, according to a notification issued by the Petroleum Division.

Daily fuel price system introduced

The Oil and Gas Regulatory Authority (Ogra) has started publishing daily petroleum prices on its website. The move is aimed at improving transparency and allowing changes in international oil prices to reach consumers more quickly.

Petroleum Minister Ali Pervaiz Malik said the daily fuel prices are based on a seven-day average of international market rates. He said the method is in line with international practice.

Global oil market volatility drives changes

The government decided to introduce a daily fuel price review system as global oil markets face uncertainty due to renewed tensions in the Middle East. The changes are linked to concerns about energy supplies and movements in international crude prices.

The government had earlier shifted to a weekly fuel price review after the Middle East conflict began on February 28. Israel and the United States attacked Iran, after which Tehran closed the Strait of Hormuz, a major route for global energy supplies.

Strait tensions add pressure on fuel markets

The Strait of Hormuz had been a key route for around one-fifth of global energy supplies before the war. Continued tensions have raised concerns about possible disruptions to the movement of oil through the strategic waterway.

A fragile June truce between Tehran and Washington later collapsed, increasing fears of a wider conflict. The uncertainty has continued to affect global energy markets and fuel price decisions.

Previously, petroleum prices in Pakistan were revised every two weeks. The shift to daily reviews means local fuel prices can now respond more quickly to changes in international oil markets.

The latest decision creates a more frequent link between international oil prices and fuel rates in Pakistan. This could mean quicker price increases when global rates rise, but consumers may also benefit sooner when international prices fall.

With petrol already close to Rs400 per litre, even a small change can affect household and transport costs. The impact will depend largely on how global oil prices and Middle East tensions develop.

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