Pakistan has raised petrol prices by Rs3.81 per litre and high-speed diesel by Rs3.59 per litre, the third fuel price revision in three days, as the government’s new daily pricing mechanism tracks a rally in global crude oil markets.
New Rates
According to a notification issued by the Petroleum Division on Friday, petrol will rise from Rs337.78 to Rs341.59 per litre, while high-speed diesel (HSD) will increase from Rs364.70 to Rs368.29 per litre. The revised rates, set by the Oil and Gas Regulatory Authority (OGRA), took effect Saturday, August 22, and will remain in place through August 24.
The Petroleum Division also confirmed the government continues to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel. Separately, the Federal Cabinet approved a Rs1.34 per litre increase in dealer margins for both fuels, raising the fixed dealer margin from Rs8.64 to Rs9.98 per litre, a move OGRA officials said helped avert a threatened nationwide strike by the Pakistan Petroleum Dealers Association.
A New Daily Pricing System
The increase is the latest under a daily pricing mechanism Pakistan adopted last month, replacing the previous fortnightly review cycle. Petroleum Minister Ali Pervaiz Malik has said the daily rates are calculated using a seven-day average of international market prices, in line with practices in other countries. OGRA has begun publishing the daily rates on its website in an effort to pass on international price movements to consumers more quickly.
The switch to daily pricing came as renewed tensions in the Middle East drove volatility in global oil markets. Brent crude has climbed above $83 a barrel in recent sessions amid concerns that the ongoing conflict could disrupt regional oil supply.
A Volatile Week for Fuel Prices
Friday’s adjustment follows two other revisions this week. On Thursday, the government raised petrol by 27 paisas and HSD by Rs1.64 per litre. A day earlier, diesel prices had been cut sharply while petrol rose modestly, reflecting the sharper daily swings the new pricing system has introduced compared with the previous fortnightly reviews.
Since Pakistan began daily fuel price updates, petrol has risen by a cumulative Rs29.29 per litre and diesel by Rs38.78 per litre, according to industry tracking site ProPakistani. Both remain well below their record highs of Rs458.41 for petrol and Rs520.35 for diesel, reached on April 3 during an earlier spike in prices tied to the escalation of the US-Iran conflict.
