Petrol price rises by Rs3.05, diesel by Rs5.37 per litre
The government has increased petrol and high-speed diesel (HSD) prices following changes in global oil markets. The new rates will put more pressure on fuel consumers.
New petrol and diesel prices announced
Petrol will now cost Rs370.80 per litre after an increase of Rs3.05. The price of HSD has risen by Rs5.37 to Rs398.04 per litre.
The revised prices were announced through a notification issued by the Petroleum Division. The new rates will take effect from September 11.
Daily fuel price system introduced
The Oil and Gas Regulatory Authority (Ogra) has started publishing daily petroleum prices on its website. The move aims to improve transparency and help pass changes in international oil prices to consumers more quickly.
Petroleum Minister Ali Pervaiz Malik said the daily prices are based on a seven-day average of international market rates. He said the system follows international practice.
Middle East tensions affect oil markets
The latest change comes as global oil prices remain volatile because of renewed tensions in the Middle East. The government has therefore decided to move towards a daily fuel price review system.
The government had earlier introduced a weekly review after the Middle East conflict began on February 28. Israel and the United States attacked Iran, after which Tehran shut the Strait of Hormuz, a key route for around one-fifth of global energy supplies before the war.
Fuel price reviews move to daily system
Tensions increased after a fragile June truce between Tehran and Washington collapsed. The development has raised fears of a wider conflict and created concerns about energy supplies through the Strait of Hormuz.
Petroleum prices were previously reviewed every two weeks. The new daily review system is aimed at responding more quickly to changes in global oil prices.
Analysis
Higher petrol and HSD prices may increase transport and other costs for consumers. Daily price reviews could make local fuel rates more closely reflect changes in the international oil market.
Petrol prices, HSD prices, fuel prices, Petroleum Division, Ogra, oil prices, global oil market, Strait of Hormuz, Middle East tensions, Pakistan fuel rates
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