Shafaqna Pakistan: The federal government has raised the prices of petrol and high-speed diesel (HSD) by Rs5.02 and Rs5.28 per litre, respectively, with the revised rates effective until September 14.
Under a notification issued by the Petroleum Division, petrol will now be sold at Rs375.82 per litre, while the price of HSD has been set at Rs403.32 per litre for the period from September 12 to September 14.
The latest increase follows another upward revision announced just a day earlier, when petrol and HSD prices were raised by Rs3.05 and Rs5.37 per litre, respectively, for September 11.
Meanwhile, international oil prices declined on Friday but remained on track for a weekly increase of more than 9%. US diesel prices also climbed to a record level as attacks targeting shipping routes in the Middle East fuelled fears of extended disruptions to global supplies.
At 11:33am, Brent crude futures had fallen $2.46, or 2.29%, to $105.17 per barrel.
US West Texas Intermediate crude fell $2.44, or 2.38%, to $100.04 a barrel. Both benchmarks hit their highest levels since mid-May earlier in the session.
Both reversed early gains after the Financial Times reported that foreign ministers in the Middle East were trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz.
On July 17, the government announced a new pricing mechanism under which petroleum product prices would be reviewed and notified on a daily basis, replacing the weekly pricing mechanism, as renewed tensions between the United States and Iran continued to drive volatility in global oil markets and raise concerns over fuel supplies.
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.
Source: Express Tribune
