• Diesel price raised by Rs31, petrol rate goes up Rs5.4 for three-day period
• Daily pricing to be decided based on seven-day average of international market prices
• Ogra to publish new rates on its website
• Ministers acknowledge move will impose fresh hardship on citizens, term EV adoption ‘inevitable’
• Pump owners reject move, threaten to go on strike if decision not withdrawn
• Crude oil prices rise 4pc on renewed US-Iran fighting
ISLAMABAD: As renewed hostilities flared in the Middle East, the government on Friday announced plans to revise fuel prices on a daily basis, rather than the weekly system that has been in vogue in recent months.
In the latest notification issued at midnight on Friday, the government raised the price of high-speed diesel by Rs31.05, taking it to Rs354.30 per litre, while petrol rates were hiked by Rs5.44, taking the per litre price to Rs316.15.
The new prices will be in effect for a three-day period, ending on July 20.
Under IMF conditions, the government had doubled its climate support levy to Rs5 per litre with effect from July 1.
In addition, it is currently charging about Rs105 per litre on both petrol and diesel in the form of customs duty, in addition to the petroleum and climate support levies, besides inland freight equalisation margins.
Before the Strait of Hormuz became a battlefield, fuel prices were revised fortnightly, usually on the first and fifteenth of the month. The US-Israeli invasion of Iran earlier this year, which led to widespread supply disruptions across the globe, had prompted the government to shift to weekly price revisions in March of this year.
Following the recent re-escalation between the US and Iran after the breakdown of a peace process brokered by Pakistan, Turkiye, Qatar and others, more supply disruptions are anticipated.
It was in this context that Petroleum Minister Ali Pervaiz Malik and Information Minister Atta Tarar announced that the government was shifting to a daily pricing mechanism, adding that the changing rates would be published by the Oil and Gas Regulatory Authority (Ogra) on its website, alongside “the factors leading to the price that we see at each petrol pump”.
The petroleum minister stated that the cabinet and the prime minister had decided to give Ogra the responsibility of deciding fuel prices on a daily basis based on international market trends.
The ministers’ televised announcement, which was initially billed as a press conference by TV channels, did not feature a Q&A session.
Following the broadcast, Dawn reached out to the information minister with queries regarding the specifics of the pricing mechanism, i.e. when will people be able to check the daily rates, who will notify the changes, and how authorities will keep a check on petrol pumps to ensure there is no hoarding or price gouging. However, no response was received until going to press.
According to the petroleum minister, the daily price announcements would be decided based on a seven-day weekly average of international market prices. He added that, as another step towards deregulation, it would be ensured that prices in the country were adjusted according to international market trends without requiring approval from him, the information minister “or anyone else”.
Mr Malik highlighted that, as part of efforts towards deregulation, Prime Minister Shehbaz had constituted a committee under the petroleum minister’s leadership, which had already held four meetings.
“In the next 15-20 days, we will decide on the post-war energy pricing and energy security architecture, based on which future generations will assess this government,” he said.
In his remarks, Information Minister Attaullah Tarar called a transition towards electric bikes and electric vehicles “inevitable”.
“We appreciate that it is not easy,” he said. “Increases in fuel prices affect people. The government understands this.”
During oil shortages at the peak of tensions, he noted that “many countries opted for rationing, but in Pakistan, there was no rationing or shortage”.
Saying that the shift to EVs would be the best solution for reducing the country’s import bill and mitigating the impact of rising prices, the information minister said the government’s priority was to “give as much relief to the nation as we can”.
Pump owners ‘reject’ move
The All Pakistan Petrol Pump Owners’ Association rejected the government’s proposed price deregulation policy, warning that it would consider protests and a strike against the decision next week if it was not withdrawn.
In a video statement, the association’s Vice Chairman Noman Ali Butt said that the government should review its policy and not place the burden of its problems on petrol pump owners.
“All stakeholders should be taken into confidence before fixing rates with oil marketing companies,” he said.
He noted that about 15,000 petrol pump owners across the country were facing serious concerns, and said that the new policy would affect oil tankers, transportation and the pricing system.
“The government should consult petrol pump owners instead of making unilateral decisions,” the vice chairman said.
International markets
Oil prices climbed more than 4pc to their highest in more than a month on Friday, with shipping threatened by a potential closure of the Red Sea route, on top of restricted traffic through the Strait of Hormuz.
Brent crude futures settled $3.87, or 4.59pc, higher to $88.10 a barrel, while US West Texas Intermediate futures rose $3.54, or 4.48pc, at $82.49. Both were at their highest since mid-June.
With input from Reuters
Published in Dawn, July 18th, 2026