ISLAMABAD: The federal government on Friday increased the prices of petrol and high-speed diesel (HSD), raising petrol by Rs5.44 per litre and diesel by Rs31.05 per litre under its revised petroleum pricing mechanism.
What are the new fuel prices?
According to a notification issued by the Petroleum Division, the price of petrol has increased from Rs310.71 to Rs316.15 per litre, while high-speed diesel has risen from Rs323.30 to Rs354.35 per litre.
The revised prices will take effect from July 18 and remain applicable until July 20.
| Petroleum Product | Previous Price | New Price | Increase |
|---|---|---|---|
| Petrol | Rs310.71/litre | Rs316.15/litre | Rs5.44 |
| High-Speed Diesel | Rs323.30/litre | Rs354.35/litre | Rs31.05 |
Why were the prices revised?
The increase follows the government’s decision to implement a daily review mechanism for petroleum prices, replacing the weekly adjustment system introduced earlier this year.
The weekly pricing mechanism had been adopted after regional tensions escalated following the outbreak of the US-Israel-Iran conflict on February 28, resulting in increased volatility in global oil markets.
During the previous weekly review, the government raised petrol prices by Rs13.18 per litre and diesel prices by Rs13.80 per litre.
Petrol is primarily used by motorists, motorcycle riders, and rickshaw operators, making price increases significant for household transportation costs.
High-speed diesel is widely consumed by the transport, agriculture, and industrial sectors, including trucks, buses, trains, tractors, tube wells, and threshers. Increases in diesel prices are generally viewed as inflationary because they raise freight costs and can contribute to higher prices for food and other essential commodities.