By The Government of Pakistan has announced a major change in its petroleum pricing policy by introducing a daily fuel price review mechanism, replacing the previous weekly review system. The decision comes as international crude oil prices continue to fluctuate due to geopolitical tensions, prompting the government to respond more quickly to changes in global energy markets.
Alongside the policy shift, the government has also increased the prices of petrol and high-speed diesel (HSD) for July 18, 2026.
According to a notification issued by the Ministry of Energy’s Petroleum Division, the price of Motor Spirit (Petrol) has been increased by Rs. 5.44 per litre, rising from Rs. 310.71 to Rs. 316.15 per litre.
Meanwhile, High-Speed Diesel (HSD) has witnessed a sharp increase of Rs. 31.50 per litre, taking its price from Rs. 323.30 to Rs. 354.80 per litre.
New Petroleum Prices
| Petroleum Product | Previous Price | Increase | New Price |
|---|---|---|---|
| Petrol (Motor Spirit) | Rs. 310.71/litre | +Rs. 5.44 | Rs. 316.15/litre |
| High-Speed Diesel (HSD) | Rs. 323.30/litre | +Rs. 31.50 | Rs. 354.80/litre |
The revised prices came into effect on July 18, 2026, and will remain applicable for the following day under the newly introduced daily review mechanism.
Government Shifts to Daily Fuel Price Reviews
Earlier, Petroleum Minister Ali Pervaiz Malik, while addressing a joint press conference alongside Information Minister Attaullah Tarar, announced that the Prime Minister Shehbaz Sharif-led federal cabinet had approved daily petroleum price revisions.
Under the new framework, the Oil and Gas Regulatory Authority (OGRA) will calculate fuel prices every day based on international market trends. Updated petroleum prices will be published daily on the authority’s official platform, allowing domestic prices to reflect global market movements more quickly.
The move follows an earlier transition from fortnightly to weekly price adjustments as international energy markets became increasingly volatile.
Middle East Tensions Driving Oil Prices Higher
According to the Petroleum Minister, escalating tensions in the Middle East have significantly affected global oil markets.
He revealed that:
- Brent crude oil has climbed to approximately US$84.75 per barrel.
- West Texas Intermediate (WTI) crude has increased to nearly US$79.80 per barrel.
- International diesel prices have surged from around US$110 per barrel to nearly US$140 per barrel following recent regional developments.
These rising international fuel prices have directly contributed to Pakistan’s latest increase in domestic petroleum prices.
Fuel Subsidies to Continue
Despite higher international oil prices, Ali Pervaiz Malik stated that the government will continue its targeted fuel subsidy programme to provide relief where possible.
He also noted that petroleum and carbon support levies on petrol and diesel remain lower than previous levels while the government continues moving toward greater deregulation of Pakistan’s petroleum sector.
Government Assures No Fuel Shortage
Information Minister Attaullah Tarar assured the public that Pakistan currently has sufficient petroleum supplies to meet national demand.
He emphasized that:
- Imported oil supplies remain uninterrupted.
- There is no shortage of petrol or diesel across the country.
- Oil Marketing Companies (OMCs) are operating under strict government monitoring.
- Authorities will take immediate action against any attempts at hoarding, profiteering, or market manipulation.
The government says these measures are intended to ensure a stable fuel supply despite volatility in international markets.
Economic Impact of Higher Fuel Prices
The sharp rise in diesel prices is expected to have a broader impact on Pakistan’s economy, as diesel is extensively used in freight transport, agriculture, construction, and industrial operations.
Higher transportation costs could increase the prices of food, agricultural produce, and consumer goods, placing additional pressure on inflation.
Although the petrol increase is comparatively modest, it will still raise commuting costs for millions of motorists, including private vehicle owners, ride-hailing services, and motorcycle users.
Outlook
Pakistan’s adoption of a daily fuel price review mechanism marks a significant policy shift aimed at responding more effectively to rapidly changing global oil prices. While the new system is expected to improve pricing transparency and align domestic fuel rates with international market trends, it also means consumers could see more frequent fluctuations at the pump.
As geopolitical tensions continue to influence global energy markets, motorists, businesses, and transport operators will be closely monitoring daily fuel price announcements in the days ahead.
