Petrol price nears Rs400, diesel rises by Rs5.62 per litre in Pakistan
New petrol and diesel prices
The government has raised the price of petrol to Rs391.22 per litre. High-speed diesel (HSD) will now be sold at Rs421.45 per litre.
According to a Petroleum Division notification, the revised prices will remain effective for September 17. The increase comes as global oil markets continue to experience uncertainty.
The government has also introduced a daily fuel price review mechanism. The new system is intended to help pass changes in international oil prices to consumers more quickly.
Daily fuel price reviews begin
The Oil and Gas Regulatory Authority (OGRA) has started publishing daily petroleum prices on its website. The move is aimed at improving transparency and making fuel price changes easier for consumers to follow.
Petroleum Minister Ali Pervaiz Malik said the daily prices are based on a seven-day average of international market rates. He added that the method follows international practice.
Middle East tensions affect oil markets
Global oil prices have faced volatility because of renewed hostilities in the Middle East. The government decided to move to daily fuel price reviews amid concerns about changes in energy supplies.
The weekly review system had been introduced after the conflict in the Middle East began on February 28. The conflict involved attacks by Israel and the United States on Iran, followed by Tehran’s closure of the Strait of Hormuz.
Changes to fuel pricing system
The Strait of Hormuz is a major route for global energy supplies, carrying around one-fifth of the world’s energy supplies before the war. Rising tensions after the collapse of a fragile June truce between Tehran and Washington have increased concerns about further disruptions.
The government previously revised petroleum prices every two weeks. The latest decision introduces daily reviews, replacing the weekly system that had been used during the earlier phase of the conflict.
The latest fuel price increase will raise the cost of petrol and diesel for consumers. Daily reviews may allow domestic prices to respond more quickly to international oil market changes, while also making price movements more frequent.
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