Pakistan’s Oil and Gas Regulatory Authority raised petrol by Rs6.39 per litre to Rs327.12 and high-speed diesel by Rs7.83 per litre to Rs375.04 for July 23, the third consecutive day of substantial fuel price increases under the daily pricing mechanism that launched on July 18 (ARY News; Daily Pakistan; Geo TV).
Kerosene oil was also raised by Rs7.80 per litre to Rs297.17 — the mechanism covering light fuel oil alongside petrol and high-speed diesel.
Running price table since mechanism launch
| Date | Petrol (Rs/litre) | Daily change | Diesel (Rs/litre) | Daily change | |——|——————-|————-|——————-|————-| | July 18 (launch) | — | +Rs5.44 | — | +Rs31.05 | | July 21 | Rs315.80 | −Rs0.35 | Rs360.06 | +Rs5.71 | | July 22 | Rs320.73 | +Rs4.93 | Rs367.21 | +Rs7.15 | | July 23 | Rs327.12 | +Rs6.39 | Rs375.04 | +Rs7.83 |
The compounding effect
The daily mechanism was designed to transmit global oil prices to Pakistani consumers without political delay — a condition of the IMF’s Extended Fund Facility. It is working exactly as designed. The problem is that it is transmitting a market inflated by the US-Iran conflict, Houthi attacks on Red Sea shipping and renewed Strait of Hormuz uncertainty.
Diesel, which drives freight, agriculture and industrial energy, has risen by Rs46.83 per litre in under a week — a 14.2 percent increase since July 18. For a long-haul truck carrying 20,000 litres, the week’s diesel hikes represent an additional fuel cost of approximately Rs936,000 per fill. Those costs are now feeding into food and consumer goods prices across the country.
Petrol, which affects passenger vehicles and two-wheelers, has risen Rs17.25 per litre since July 18 — a 5.6 percent increase in five trading days. The only partial reprieve — the July 21 petrol reduction of Rs0.35 — has been entirely reversed and then some by the July 22 and July 23 hikes.
OGRA will announce July 24 prices Wednesday evening, with direction depending on how Brent crude and the rupee-dollar exchange rate move during the day.
