The federal government has announced another reduction in petroleum prices, lowering the rates of both petrol and high-speed diesel (HSD). The revised prices will take effect from August 7, reflecting recent movements in international oil markets.
At the same time, the government has introduced a new pricing mechanism under which fuel prices will now be reviewed daily instead of weekly.
Petrol and Diesel Prices Reduced
Under the latest notification issued by the Petroleum Division, the price of petrol has been reduced by Rs3.19 per litre, bringing the new rate to Rs329.82 per litre.
Similarly, the price of high-speed diesel (HSD) has been lowered by Rs1.50 per litre. Consequently, HSD will now retail at Rs382.36 per litre.
Despite the reduction, the government continues to impose Rs110 per litre in taxes and duties on petrol. Meanwhile, taxes and duties on high-speed diesel remain Rs96 per litre.
The revised rates became effective on August 7.
Fuel Prices Have Declined From Earlier Peaks
The latest adjustment comes after fuel prices climbed sharply during regional tensions earlier this year.
High-speed diesel had reached a peak of Rs520.35 per litre on April 3, after rising from Rs281 per litre following the outbreak of the US-Iran conflict on February 28.
Likewise, petrol prices had surged to Rs458.41 per litre on April 3 after standing at Rs266 per litre during the first week of March.
The recent decline reflects easing international market conditions compared with those earlier peaks.
Government Introduces Daily Fuel Pricing
In a significant policy shift, the government has decided to replace weekly fuel price revisions with a daily pricing mechanism.
According to Petroleum Minister Ali Pervaiz Malik, the decision was approved by the federal cabinet and the prime minister in response to continued fluctuations in global oil prices.
Under the new system, the Oil and Gas Regulatory Authority (OGRA) will determine petroleum prices every day based on prevailing international market trends.
Previously, fuel prices had been revised on a weekly basis after the government adopted emergency measures during heightened uncertainty in global energy markets.
Earlier this year, authorities also introduced targeted relief measures aimed at providing subsidized fuel to selected consumers.
Dealers Oppose the New Pricing System
The decision to introduce daily fuel pricing has not received unanimous support.
The All Pakistan Dealers Association rejected the new mechanism and stated that it would consider a protest strategy against the government’s decision.
The association believes frequent price adjustments could create operational challenges for fuel retailers.
Why Fuel Prices Matter
Changes in petrol prices directly affect millions of Pakistanis because petrol is widely used in private vehicles, motorcycles, rickshaws, and small transport.
As a result, price fluctuations have a greater impact on middle-income and lower-middle-income households.
Meanwhile, high-speed diesel remains the primary fuel for heavy transport vehicles, power plants, and large industrial generators. Therefore, changes in diesel prices influence transportation costs, industrial operations, and the broader economy.
Both petrol and high-speed diesel continue to be the country’s highest-selling petroleum products, with combined monthly sales ranging between 700,000 and 800,000 tonnes. In comparison, monthly demand for kerosene remains significantly lower at around 10,000 tonnes.
The latest reduction offers some relief to consumers. However, the introduction of daily pricing means fuel rates may now respond more quickly to changes in international oil markets, making future price movements more frequent.
