The federal government has increased petrol and high-speed diesel prices again, adding further pressure on consumers already facing rising transport and living costs.
Petrol has become more expensive by Rs5.02 per litre.
The new petrol price has been fixed at Rs375.82 per litre.
High-speed diesel has increased by Rs5.28 per litre.
Its new price now stands at Rs403.32 per litre.
The revised rates will remain effective from September 12 until September 14, according to a notification issued by the Petroleum Division.
The latest increase comes just one day after another fuel price revision.
For September 11, petrol had already been raised by Rs3.05 per litre, while diesel increased by Rs5.37 per litre.
The back-to-back increases reflect growing volatility in international energy markets.
Global Oil Prices Remain Under Pressure
International oil prices declined slightly on Friday but remained on track for a strong weekly gain.
Brent crude futures fell by $2.46 to around $105.17 per barrel.
US West Texas Intermediate crude dropped by $2.44 to approximately $100.04 per barrel.
Despite the decline, both benchmarks had reached their highest levels since mid-May earlier in the session.
Oil prices have remained elevated because of concerns over supply disruptions in the Middle East.
Attacks along key shipping routes have increased fears that energy supplies could remain under pressure for an extended period.
US diesel prices also reached record levels as traders reacted to uncertainty around regional shipping routes.
Markets briefly gained support from reports that Middle Eastern foreign ministers were exploring a temporary arrangement with Iran regarding shipping through the Strait of Hormuz.
Any agreement that improves traffic through the waterway could reduce pressure on global fuel markets.
However, uncertainty remains high.
Daily Fuel Pricing Exposes Consumers to Global Volatility
The government introduced a new petroleum pricing system on July 17.
Under the mechanism, petroleum product prices are reviewed and notified on a daily basis.
The system replaced the previous weekly pricing framework.
The change was introduced as tensions between the United States and Iran increased volatility in global oil markets.
The government says daily revisions allow domestic prices to reflect international market movements more quickly.
However, the mechanism also means consumers can face frequent price changes when crude oil and shipping costs rise sharply.
Pakistan remains heavily dependent on imported petroleum products.
According to the Pakistan Economic Survey 2024-25, petroleum is one of the country’s largest import categories.
Domestic refineries meet only part of national fuel demand.
The remaining requirement is covered through imported crude oil and refined petroleum products.
This makes Pakistan highly vulnerable to international oil price movements.
Higher Fuel Costs Could Add to Inflationary Pressure
Any increase in global crude oil prices raises Pakistan’s import bill.
It can also place additional pressure on foreign exchange reserves.
Higher petrol and diesel prices quickly affect transport, freight and distribution costs.
These costs can then feed into food prices and other consumer goods.
High-speed diesel is especially important because it is widely used in freight transport, agriculture and commercial activity.
The increase beyond Rs403 per litre could therefore have wider economic consequences.
Pakistan has previously used subsidies and administrative controls to limit fuel price increases.
Such measures offered temporary relief to consumers but created significant fiscal costs.
Successive governments have faced pressure when global prices increased faster than domestic fuel rates.
Delaying price adjustments can create financial problems for oil marketing companies, refineries and the federal budget.
Large fuel subsidies can also widen fiscal deficits and increase public borrowing.
The government has therefore shifted towards more frequent market-based price adjustments.
Global geopolitical risks remain a major concern.
Oil prices are influenced by OPEC+ production decisions, conflicts in the Middle East and sanctions on major oil-producing countries.
Disruptions in the Strait of Hormuz and the Red Sea can also sharply increase freight and insurance costs.
For Pakistan, any prolonged disruption in these routes could result in further fuel price increases.
The latest revision means petrol is now approaching Rs376 per litre, while diesel has crossed the Rs403 level.
Future prices will depend largely on international crude markets and developments affecting Middle Eastern energy supplies.
