Pakistan Introduces Daily Fuel Pricing, Raises Petrol and Diesel

Pakistan has officially transitioned to a daily petroleum pricing mechanism, with the federal government issuing its first notification under the new system on Friday, increasing the prices of both petrol and high-speed diesel (HSD).

According to a notification issued by the Ministry of Energy (Petroleum Division), the ex-depot price of Motor Spirit (petrol) has been increased by Rs5.44 per litre, rising from Rs310.71 to Rs316.15 per litre. Meanwhile, the price of High-Speed Diesel (HSD) has been raised by Rs31.05 per litre, increasing from Rs323.30 to Rs354.35 per litre.

The revised prices will remain effective from July 18 to July 20, 2026, owing to the weekend holidays. According to industry sources, petroleum prices will be reviewed again on Monday, after which revisions may be made on every working day under the newly introduced pricing framework.

The significant increase in HSD prices is expected to have widespread economic implications. Diesel is extensively used by freight transport, heavy commercial vehicles, buses, tractors, tube wells, harvesters, and industrial machinery, meaning higher diesel costs are likely to increase transportation, logistics, agricultural production expenses, and ultimately the prices of essential goods and food items.

Similarly, the rise in petrol prices will directly affect owners of motorcycles, cars, rickshaws, and other passenger vehicles, increasing commuting expenses for millions of consumers and adding further pressure on household budgets, particularly for salaried and middle-income families.

The daily pricing mechanism forms part of the government's broader petroleum sector deregulation strategy, under which the Oil and Gas Regulatory Authority (OGRA) will now determine and publish petroleum product prices on a daily basis, replacing the previous fortnightly pricing model.

The revised framework is intended to align domestic fuel prices more closely with fluctuations in international oil markets. However, petrol pump owners have expressed reservations regarding the policy, urging the government to consult industry stakeholders before fully implementing the new pricing regime.