Diesel crosses Rs402 as petrol price holds steady

The federal government has increased the price of high-speed diesel (HSD) by Rs2.29 per litre while keeping petrol rates unchanged for the next three days, adding to the financial pressure on consumers amid volatility in international oil markets.

According to a notification issued by the Petroleum Division on Friday, diesel will now cost Rs402.96 per litre, while petrol will remain available at Rs377.91 per litre from October 31 to November 2.

The latest increase follows a previous adjustment on October 29, when the government raised diesel prices by 85 paisa per litre, pushing the fuel above the Rs400 mark.

Pakistan introduced a daily petroleum pricing mechanism on July 17, replacing the previous weekly system. The decision came amid renewed tensions between the United States and Iran, which have heightened uncertainty in global energy markets and raised concerns about international fuel supplies.

The government had also announced a targeted fuel relief programme on September 13. Under the initiative, motorcycles, three-wheelers and cars with engines up to 800cc were promised a subsidy of Rs100 per litre to reduce the impact of rising fuel costs on lower-income households.

The proposed scheme was expected to benefit around 11.8 million people. Motorcycle and three-wheeler users were allocated monthly fuel relief of up to Rs2,000, while eligible small-car owners could receive up to Rs3,000.

Meanwhile, the government introduced austerity and fuel conservation measures on September 17 in response to rising petroleum costs. The restrictions included closing markets and shopping centres by 9pm, marriage halls by 10pm and restaurants by 11pm. Takeaway and home delivery services were exempted.

International oil prices have remained under pressure from escalating geopolitical tensions, particularly the conflict involving Iran, disruptions to shipping routes and uncertainty over global energy supplies.

Crude prices surged more than two per cent on Friday after reports that a tanker had been struck in the Strait of Hormuz. Renewed concerns over a possible escalation of the Iran conflict also supported the rally.

Brent crude, the international benchmark, climbed 2.37 per cent to $117.56 per barrel, while US West Texas Intermediate (WTI) gained 2.13 per cent to reach $104.17 per barrel.

Reports of fresh missile attacks targeting Saudi Aramco facilities also contributed to concerns about regional energy security.

Market participants are closely monitoring developments in the Middle East, particularly the security of the Strait of Hormuz, a critical route for international oil shipments.

The United States has also indicated efforts to revive diplomatic engagement with Tehran. US Vice President JD Vance reportedly sent a letter to Mohsen Rezaei, head of Iran’s Supreme National Security Council, as Washington explored the possibility of restarting negotiations.