ISLAMABAD: Pakistan’s Oil and Gas Regulatory Authority (OGRA) on Thursday increased the prices of petrol and high-speed diesel (HSD) by Rs4.40 and Rs3.62 per litre under a new price mechanism.
Following the revision, petrol will be available at Rs331.52 per litre, while the price of high-speed diesel rises to Rs378.66 per litre.
According to a notification issued by the Petroleum Division, the revised prices will take effect from July 24.
Petroleum Minister Ali Pervaiz Malik has said the daily pricing mechanism is based on a seven-day average of international market prices, aligning Pakistan’s fuel pricing system with international standards.
Daily fuel price review mechanism
The government has shifted to a daily fuel price review mechanism amid heightened volatility in global oil markets triggered by renewed tensions in the Middle East. The move is aimed at ensuring that changes in international oil prices are reflected more quickly in domestic fuel rates.
The government had earlier replaced the fortnightly pricing system with weekly reviews following the outbreak of the Middle East conflict. The latest escalation in regional tensions and concerns over disruptions to energy supplies through the Strait of Hormuz prompted authorities to adopt daily price revisions.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.
Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.
Global oil prices top $100 per barrel
Global oil prices surged above $100 a barrel on Thursday after Yemen’s Houthi militia claimed attacks on two oil tankers in the Red Sea, fuelling fears of disruptions to global energy supplies.
Also Read: Oil Prices Top $100 Per Barrel After Houthi Militia Red Sea Attacks
Brent crude, the international benchmark, climbed more than 6% in early trading to above $100 per barrel, its highest level since the end of May. The rally marked the first time Brent had crossed the $100 threshold in about eight weeks.
The US benchmark, West Texas Intermediate (WTI), also extended gains for a second consecutive session, rising around 5% to $91.19 per barrel, its highest level since June 11.
The rise followed claims by Yemen’s Houthi movement that it had targeted two oil tankers in the Red Sea, one of the world’s busiest maritime trade routes.
The latest attacks marked the first time since the Iran war began that shipping attacks had spread beyond the Strait of Hormuz.
The Red Sea, particularly the Bab el-Mandeb Strait, is a critical gateway for global energy supplies. Millions of barrels of crude oil pass through the waterway every day en route to international markets.
