ISLAMABAD: The federal government raised the prices of both petrol and high-speed diesel on Friday, increasing fuel costs as Pakistan continues to face volatility in international energy markets.
According to a notification issued by the Petroleum Division, the price of petrol was increased by Rs2.84 per litre, while high-speed diesel rose by Rs2.28 per litre. The revised prices took effect on September 4.
The increase comes only days after the government raised petrol by 77 paisas per litre at the beginning of September while reducing the price of high-speed diesel by Rs1.03.
Fuel pricing has become particularly volatile following the escalation of the US-Iran conflict and disruptions surrounding the Strait of Hormuz, through which a significant share of the world’s oil supplies normally passes.
Pakistan is particularly exposed to fluctuations in international petroleum markets due to its heavy dependence on imported fuel. Changes in global crude and refined-product prices, together with movements in the rupee-dollar exchange rate and domestic taxes and levies, feed into prices paid by consumers.
The latest adjustment also comes as the government moves towards a more frequent fuel-pricing mechanism designed to respond more rapidly to changes in international markets.
Separately, the government is preparing to deregulate petrol prices by June 2027, according to a report published on Friday. Under the proposed reforms, petrol prices would increasingly be determined by market conditions rather than through the existing government-controlled mechanism, while high-speed diesel deregulation would follow at a later stage.
The government is also considering granting the Oil and Gas Regulatory Authority greater authority to adjust diesel prices without repeatedly seeking cabinet approval.