Pakistanis are set to face another wave of inflation as federal government announced fresh increase in petroleum prices, pushing petrol and High-Speed Diesel (HSD) to new highs ahead of the next pricing cycle.
The revised rates, which will take effect after the current prices expire on July 20 following the government’s official notification, are expected to significantly raise transportation, logistics and production costs across the country. Under the latest revision, petrol has been increased by Rs5.44 per litre to Rs316.15 per litre, while High-Speed Diesel has witnessed a steep hike of Rs31.50 per litre, taking its price to Rs354.80 per litre.
The sharp increase in diesel prices is expected to hit the agriculture, freight and public transport sectors the hardest, as diesel remains the primary fuel for heavy vehicles, farm machinery and goods transportation.
The announcement comes as the government shifts towards a daily petroleum pricing mechanism, replacing the previous pricing model in response to heightened uncertainty in global oil markets following recent geopolitical tensions, including military exchanges between the United States and Iran. The move is aimed at enabling quicker adjustments in domestic fuel prices in line with international market fluctuations.
However, the policy has triggered alarm within Pakistan’s oil marketing industry, particularly among smaller oil marketing companies (OMCs), which fear the new pricing regime could push many of them deeper into financial distress.
The Oil Marketing Association of Pakistan (OMAP) has warned that emerging and smaller OMCs are already under severe financial strain due to stagnant marketing margins, delayed government payments and repeated inventory losses caused by frequent fuel price adjustments.
OGRA to set fuel prices daily under new policy, says petroleum minister
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