ISLAMABAD: Pakistan’s Oil and Gas Regulatory Authority (OGRA) on Friday increased the prices of petrol and high-speed diesel (HSD) by Rs3.66 and Rs4.80 per litre under a new price mechanism.
Following the revision, petrol will be available at Rs335.18 per litre, while the price of high-speed diesel rises to Rs383.46 per litre.
According to a notification issued by the Petroleum Division, the revised prices will take effect from July 25.
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 surge nearly 30 Percent
Global oil prices have surged nearly 30 percent since the United States resumed military strikes against Iran earlier this month, with escalating tensions in the Middle East fueling fears of supply disruptions and pushing crude benchmarks to their fourth consecutive weekly gain.
Also Read: Oil Prices Surge Nearly 30% as US-Iran Conflict Raises Supply Fears
Brent crude traded at around $101 a barrel on Friday, up from approximately $78 on July 7 when the latest phase of the US-Iran conflict began. US West Texas Intermediate (WTI) crude rose to about $91 a barrel from nearly $74 over the same period, according to market data compiled by Reuters and Trading Economics.
Oil markets have been driven higher by growing concerns over the security of key maritime trade routes. The Associated Press reported that tanker traffic through the Strait of Hormuz has declined amid the conflict.
