Petrol Price Drops by Rs7.54 in Pakistan, Diesel Sees Small Bump

KARACHI – Starting August 1, Pakistani consumers will pay Rs7.54 less per liter for petrol, as the government moves to adjust fuel prices in line with global market dynamics. However, the cost of high-speed diesel (HSD) has crept up by Rs1.48 per liter.

The revised rates, announced late Thursday by the Finance Division, are part of the country’s regular fortnightly review of petroleum prices. Petrol will now retail at Rs264.61 per liter, down from the previous Rs272.15. On the flip side, HSD will now cost Rs285.83 per liter, up slightly from Rs284.35.

Global Forces, Local Consequences

Fuel pricing in Pakistan is highly sensitive to international oil trends, currency exchange rates, and local tax policies. The latest cut in petrol prices reflects a softening in global crude oil prices—offering a rare bit of economic relief in a country grappling with stubborn inflation.

Yet, not all fuels saw a price dip. The modest rise in diesel rates, though marginal, could still impact freight and agricultural costs, given diesel’s widespread use in transport and industry. That ripple effect tends to hit food prices and other essentials hardest—costs that disproportionately affect low- and middle-income households.

Relief After a Series of Hikes

This price drop comes after a series of fuel price increases that piled pressure on consumers. Over the past six weeks alone, petrol and diesel prices were raised three times—most recently by Rs5.36 and Rs11.37 per liter, respectively, earlier in July.

The back-to-back hikes were triggered in part by instability in global oil markets, particularly during a 12-day flare-up between Iran and Israel in July. While Pakistan did not face any immediate supply disruptions, the government had ordered oil marketing companies to maintain reserve stockpiles amid concerns that the conflict could impact shipments through the Strait of Hormuz—a key chokepoint for global oil flows.

Looking Ahead

While the current petrol price cut offers short-term breathing room for consumers, market watchers caution that volatility is far from over. Pakistan’s heavy reliance on imported fuel keeps it exposed to global geopolitical tensions and commodity price shocks. With inflation still high and the rupee under pressure, any sharp movement in oil prices abroad will continue to echo loudly at home.

For now, motorists can fill up their tanks at a slightly lower cost—but the unpredictability of the global energy market means this relief could be fleeting.