ISLAMABAD: The federal government announced an adjustment in petroleum prices, raising the cost of petrol while introducing a substantial reduction in the price of high-speed diesel (HSD).
According to a notification issued by the Petroleum Division, the price of petrol (motor spirit) was increased by Rs 2.97 per litre, bringing its new rate to Rs 337.51 per litre.
Conversely, the price of diesel experienced a massive relief, dropping by Rs 32.63 per litre to settle at Rs 363.06 per litre.
This notable decrease in diesel prices followed direct directives from the Prime Minister, who instructed authorities to negotiate terms with domestic oil refineries. The newly revised prices will remain effective until August 20.
Evolution of Fuel Prices in Pakistan Over the Past Five Months
The trajectory of petroleum prices in Pakistan over the past five months has been characterized by sharp volatility, heavily influenced by shifting international crude oil markets, geopolitical tensions, and domestic fiscal adjustments.
Following localized and global supply chain shocks earlier in the year—particularly driven by Middle Eastern escalations and fluctuating benchmarks—fuel costs experienced intense upward pressures.
Throughout spring and early summer, consumers faced immense financial strain as high-speed diesel peaked significantly, crossing historic thresholds due to increased agricultural demand and transport expenses.
To cope with these rapid market shifts, the government transitioned from fortnightly announcements to dynamic, short-term price reviews, allowing authorities to manage escalating import bills and local inflation more closely.
The recent intervention by the Prime Minister to engage directly with local oil refineries marks a pivotal shift in mitigation strategies.
By easing structural margins and optimizing local refining outputs, the administration managed to pull diesel prices down from their recent highs.
However, petrol prices have continued to hover at elevated levels due to persistent petroleum development levies (PDL) and fixed tax targets mandated under fiscal stabilization programs.
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Ultimately, this five-month period underscores the delicate balance Pakistan must maintain between absorbing global energy shocks and protecting industrial and domestic consumers from crippling inflationary spikes.
