Pakistan’s petroleum prices were revised sharply upward on July 18 under the government’s newly adopted daily OGRA pricing mechanism, with high-speed diesel jumping Rs31.05 per litre from Rs323.30 to Rs354.35 and petrol rising Rs5.44 from Rs310.71 to Rs316.15 per litre (Aaj English TV; Daily Pakistan; The News).
The Rs31.05 diesel increase is among the largest single revisions in Pakistan’s fuel price history and is driven by the continued elevation of global crude and distillate prices attributable to the US-Iran conflict and the Strait of Hormuz crisis. The revised prices are effective from July 18 to July 20, with the next revision to follow under the newly implemented daily pricing system.
Kerosene prices were also increased by Rs34 per litre. Petrol stands at Rs316.15 and diesel at Rs354.35 as of Friday.
Sectoral impact
Diesel’s sharp increase will hit freight, agriculture and public transport hardest. High-speed diesel powers heavy goods vehicles, buses, trains, tractors, tube wells and agricultural threshers — meaning the Rs31 hike adds directly to the cost of transporting goods and operating farm equipment. Pakistani food prices, which have already been rising on the back of higher energy costs, are expected to feel additional upward pressure as trucking costs adjust.
Petrol’s Rs5.44 increase is more moderate but adds to what is already a record fuel burden for car and motorcycle users. Petrol at Rs316.15 per litre compares to approximately Rs205 per litre a year ago before the Middle East conflict disrupted global energy markets.
The Rs80 per litre petroleum levy — maintained at its record level to meet IMF fiscal targets — remains unchanged. Pakistan has limited ability to absorb international price spikes through levy reduction without creating a corresponding IMF programme breach.
