ISLAMABAD: Pakistan’s Oil and Gas Regulatory Authority (OGRA) on Wednesday increased the prices of petrol and high-speed diesel (HSD) by Rs6.39 and Rs7.83 per litre, respectively, to pass on the impact of fluctuations in global oil prices to consumers.
Following the revision, petrol will be available at Rs327.12 per litre, while the price of high-speed diesel rises to Rs375.04 per litre.
According to a notification issued by the Petroleum Division, the revised prices will take effect from July 23.
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.
Oil climbs above $95 barrel as Middle East war escalates
Oil, chiefly Brent North Sea crude, climbed above $95 a barrel on Wednesday, reaching its highest level in nearly six weeks as escalating conflict in the Middle East heightened concerns over oil supplies and tanker movements through critical maritime chokepoints.
According to Vanguard News, Brent futures briefly traded above the $95 mark during Asian and European trading hours, extending gains recorded earlier Wednesday.
Also Read: Oil Tops $95 as Mideast War Escalates
US benchmark West Texas Intermediate (WTI) also advanced sharply, reflecting growing anxiety among traders over the possibility of a prolonged disruption to energy flows from the region, according to The Wall Street Journal.
The latest rally comes amid intensifying hostilities involving Iran and the United States, with shipping activity through the Strait of Hormuz and the Bab el-Mandeb Strait remaining well below normal levels.
The Strait of Hormuz alone handles roughly one-fifth of global oil consumption, making any threat to its operations a major concern for international markets.
Market participants have increasingly priced in geopolitical risk premiums as attacks on commercial vessels and warnings from regional actors add to uncertainty.
Several tankers have reportedly altered routes or delayed transit through the Arabian Gulf, raising transportation costs and tightening supply expectations.
Petroleum Pump Owners Association postpones nationwide strike
Earlier, the All Pakistan Petroleum Pump Owners Association (APPPOA) postponed its nationwide strike call for two weeks following successful negotiations with the petroleum minister.
The association had announced the strike a day earlier after talks with the government over the daily petroleum pricing mechanism failed to reach a breakthrough.
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.
