ISLAMABAD: Pakistan’s Oil and Gas Regulatory Authority (OGRA) on Monday slashed the price of petrol by Rs1 per litre while increasing the price of high-speed diesel by Rs3.37 per litre under a new price mechanism.
Following the revision, petrol will be available at Rs334.18 per litre, while the price of high-speed diesel rises to Rs386.83 per litre.
According to a notification issued by the Petroleum Division, the revised prices will take effect from July 28.
Petroleum Minister Ali Pervaiz Malik 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.
Pakistan introduces daily fuel price review mechanism
The government introduced the daily fuel price review mechanism in response to heightened volatility in global oil markets caused by renewed geopolitical tensions in the Middle East. The move is intended to ensure that fluctuations in international oil prices are passed on to domestic consumers more promptly.
Before adopting daily reviews, the government had shifted from a fortnightly to a weekly pricing system after tensions in the Middle East intensified. The latest escalation in the region, coupled with concerns over potential disruptions to global energy supplies through the Strait of Hormuz, prompted authorities to move to daily fuel price adjustments.
Petrol is primarily consumed by private motorists, motorcyclists, rickshaw operators and owners of small vehicles. As a result, changes in petrol prices have a direct impact on middle- and lower-middle-income households.
Diesel, meanwhile, is widely used in heavy transport, agriculture, power generation and industrial operations. Consequently, any change in diesel prices has broader implications for transportation costs, food prices and overall inflation.
Global oil prices fall up to 7%
Global oil prices fell by five to seven per cent on Monday after the United States and Iran paused hostilities over the weekend, easing the Middle East energy supply concerns and extending a retreat from recent highs.
Also Read: Global Oil Prices Fall Up to 7% as US-Iran Pause Eases Supply Fears
Brent crude, the international benchmark, traded between approximately $88 and $92 per barrel during the session, while US West Texas Intermediate (WTI) hovered in the mid-$80s.
Reuters and the Associated Press reported Brent at around $92 per barrel, while electronic trading platforms showed the benchmark dipping below $88 intraday.
Oil prices went down sharply after Washington refrained from launching new strikes on Iran, and Tehran similarly paused retaliatory action, reviving hopes that diplomacy could prevent a broader regional conflict.
Lower oil prices also boosted sentiment across global financial markets by easing concerns about inflation and energy costs.
