Petrol price hiked by Rs5.44, diesel surges Rs31.05 under new daily pricing regime

ISLAMABAD: Pakistan on Friday entered a new era of daily petroleum pricing as the government raised the price of petrol by Rs5.44 per litre and high-speed diesel (HSD) by Rs31.05 per litre under the first notification issued after the introduction of the new pricing mechanism.

According to a notification issued by the Ministry of Energy (Petroleum Division), the ex-depot price of petrol (Motor Spirit) was increased from Rs310.71 to Rs316.15 per litre, while the price of HSD rose from Rs323.30 to Rs354.35 per litre.

The revised prices will remain effective from July 18 to July 20, 2026, due to the weekend holidays. Industry sources said petroleum prices would be reviewed again on Monday and, under the new mechanism, could be revised on every working day.

The sharp increase in diesel prices is expected to have a significant impact on the economy. HSD is widely used by heavy transport vehicles, freight trucks, buses, tractors, tube wells, harvesters and industrial machinery. A substantial rise in diesel prices increases transportation, logistics and agricultural costs, which can eventually push up the prices of food and other essential commodities.

Petrol is primarily used by motorcycles, cars, rickshaws and other small passenger vehicles. An increase in its price directly raises commuting costs for millions of households and adds to the financial burden on salaried and middle-income families.

Under the government's broader petroleum sector deregulation plan, the Oil and Gas Regulatory Authority (OGRA) is to determine and publish petroleum product prices on a daily basis, replacing the previous fortnightly pricing system.

The new mechanism is aimed at aligning domestic fuel prices more closely with international oil market trends, although petrol pump owners have raised concerns over the proposed reforms and demanded consultation with all stakeholders.