Shafaqna Pakistan: The federal government on Wednesday increased the prices of petrol and high-speed diesel (HSD) by Rs3.40 and Rs6.72 per litre, respectively, for September 10.
According to a Petroleum Division notification, petrol will be priced at Rs367.75 per litre, while HSD will cost Rs392.67 per litre on Thursday.
The latest increase comes a day after the government raised petrol and HSD prices by Rs5.58 and Rs4.18 per litre, respectively, for September 9.
On July 17, the government introduced a new pricing mechanism under which petroleum prices would be reviewed and notified daily, replacing the previous weekly system. The change came amid renewed US-Iran tensions, which have contributed to volatility in global oil markets and raised concerns about fuel supplies.
Since the new system was introduced, a massive increase has been witnessed in prices, with petrol rising by over Rs50 per litre, while diesel has also gone up by around Rs40 per litre.
According to the Pakistan Economic Survey 2024-25, petroleum products constitute one of the country’s largest import categories, making the economy highly vulnerable to changes in global crude oil prices. Domestic refineries satisfy only part of national demand, while the remainder is met through imports of crude oil and refined petroleum products. Consequently, every increase in international oil prices raises Pakistan’s import bill, pressures foreign exchange reserves, and contributes to inflation.
Pakistan previously exercised significant government control over petroleum pricing through subsidies and administrative interventions. While these measures temporarily protected consumers, they imposed substantial fiscal costs. During periods of elevated global oil prices, successive governments delayed passing price increases to consumers, creating financial pressures for oil marketing companies, refineries, and the national budget. Large fuel subsidies widened fiscal deficits, increased public borrowing, and weakened macroeconomic stability.
Global geopolitical developments continue to pose significant risks. International oil prices are influenced by decisions taken by OPEC+, conflicts in the Middle East, sanctions on oil-producing nations, and disruptions in critical shipping routes such as the Strait of Hormuz and the Red Sea. Any interruption in these supply chains can immediately increase crude oil prices and freight costs. Since Pakistan imports the majority of its petroleum requirements, these developments quickly translate into higher domestic fuel prices.
Brent crude prices surged past $100 a barrel on Wednesday, as escalating conflict in the Middle East fuelled worries about energy-driven inflation and sent global stocks tumbling ahead of several major central bank decisions.
Brent crude futures rose as much as 3% to a session high of $100.95, breaching the symbolic price level for the first time since July 24, after Iran said it fired ballistic missiles at a US base in Jordan and both sides claimed to have attacked vessels, raising worries about oil supplies from the region.
Source: Express Tribune
