Government Raises Petrol, Diesel Prices Again

The federal government on Wednesday night announced another increase in petroleum prices, raising the rates of petrol and high-speed diesel (HSD) by Rs6.39 and Rs7.83 per litre, respectively, due to changes in international oil prices.

According to a notification issued by the Petroleum Division, the price of petrol has increased from Rs320.73 to Rs327.12 per litre, while the price of HSD has risen from Rs367.21 to Rs375.04 per litre.

The revised fuel prices came into effect on July 23, 2026, under the government's newly introduced fuel pricing mechanism.

The latest hike follows continued volatility in global oil markets driven by renewed regional tensions, leading the government to pass the higher import costs of petroleum products on to consumers.

The price adjustment also comes after the All Pakistan Petroleum Pump Owners Association (APPPOA) postponed its planned nationwide strike for two weeks following successful negotiations with Petroleum Minister Ali Pervaiz Malik.

The association had previously announced a countrywide shutdown after discussions with the government over the implementation of the daily fuel pricing system failed to reach an agreement.

Petrol is mainly used by motorcycles, private cars, rickshaws, and small transport vehicles, making any increase in its price particularly burdensome for middle- and lower-income households.

Meanwhile, HSD is extensively consumed by heavy transport, agriculture, power generation, and industrial sectors, meaning its price directly influences inflation and raises the overall cost of business operations.

Petrol and HSD remain Pakistan’s two highest-selling petroleum products, with combined monthly sales ranging between 700,000 and 800,000 tonnes, compared with approximately 10,000 tonnes of kerosene.