Govt decreases Petrol by Rs0.35, increases Diesel by Rs5.71 amid regional hostilities

The government on Monday decreased the price of petrol by Rs0.35 per litre while increasing the price of high-speed diesel by Rs5.71 per litre, reflecting fluctuations in global oil markets following renewed regional hostilities in the Persian Gulf. Following the changes, petrol now stands at Rs315.80 per litre, while HSD is priced at Rs360.06, effective from July 21.

The price adjustment comes as part of the government’s new daily pricing mechanism, announced earlier by Petroleum Minister Ali Pervaiz Malik, which aims to pass on the impact of international market volatility to consumers in a timely manner. The government had been announcing weekly revisions since early March, but the escalating conflict between Iran and the US has led to significant fluctuations in oil prices, prompting the shift to daily updates.

The diesel price has come down from a peak of Rs520.35 recorded on April 3, while petrol peaked at Rs458.41 on the same date. Both products had begun their upward trajectory from around Rs266-281 per litre after the US-Iran war broke out on February 28. The latest adjustment reflects the ongoing instability in global energy markets, which have been disrupted by the conflict in the Middle East.

Petrol is mainly used in private transport, small vehicles, rickshaws, and two-wheelers, making its price particularly impactful on the middle and lower-middle classes. Diesel, which is used in the heavy transport sector, power plants, and large generators, affects the broader economy and the cost of goods and services. Both products are major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes.

The daily pricing decision has been met with resistance from the All Pakistan Dealers Association, which rejected the move and said it would consider a protest plan this week. The government, however, has emphasized the need for flexibility in pricing to respond to international market trends and ensure the stability of fuel supplies.

As the conflict in the Middle East continues to impact global oil markets, Pakistan’s fuel prices are expected to remain volatile. The government has also introduced measures to conserve fuel and provide targeted relief to consumers, but the broader economic impact of rising energy costs remains a concern. The daily pricing mechanism is part of the government’s efforts to manage these challenges, but it also places a greater burden on consumers, who now face more frequent price changes. The coming weeks will determine whether the new system can effectively manage the volatility or whether further adjustments will be needed.