Pakistan begins one-day fuel pricing as diesel rises Rs5.71, petrol falls 35 paisas

ISLAMABAD: Pakistan shifted to one-day fuel pricing on Monday, raising the ex-depot price of high-speed diesel (HSD) by Rs5.71 per litre to Rs360.06 while reducing petrol by 35 paisas to Rs315.80 for July 21.

The official notification marks the first time petroleum prices have been fixed for a single day since the government introduced its daily pricing mechanism. 

The previous notification, issued on July 18, remained effective for three days from July 18 to July 20.

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The Ministry of Energy (Petroleum Division) said the Oil and Gas Regulatory Authority had revised ex-depot petroleum prices for July 21 under the new pricing mechanism.

The ex-depot price of HSD increased from Rs354.35 to Rs360.06 per litre, while the price of motor spirit, or petrol, declined from Rs316.15 to Rs315.80 per litre.

The latest notification reflects the government’s transition from the decades-old fortnightly pricing system to daily revisions intended to make domestic fuel prices more responsive to movements in international oil prices and the exchange rate.

The rise in diesel could have broader economic implications because HSD is widely used by heavy transport vehicles, freight carriers, buses, tractors, tube wells, railways and other agricultural machinery.

Higher diesel prices typically increase transportation and agricultural input costs, which can eventually affect the prices of food and other essential goods.

Petrol is mainly consumed by motorcycles, cars, rickshaws and other private vehicles. The 35-paisa reduction offers only marginal relief to motorists and is unlikely to have a significant impact on household fuel expenses.