Pakistan Raises Diesel Price by Rs2.29 per Litre, Keeps Petrol Unchanged

The federal government has increased the price of high-speed diesel (HSD) by Rs2.29 per litre while keeping petrol prices unchanged for the next three days.

According to a Petroleum Division notification, petrol will continue to sell at Rs377.91 per litre. The new diesel price of Rs402.96 per litre will apply from October 31 to November 2.

The latest increase follows a separate 85-paisa hike in diesel prices for October 29. That revision pushed the fuel price above Rs400 per litre.

Government Introduces Daily Fuel Price Reviews

The latest adjustment comes under the government’s daily petroleum pricing mechanism.

On July 17, the government replaced its weekly pricing system with daily reviews and notifications. The move came amid renewed tensions between the United States and Iran and uncertainty in global oil markets.

The new system allows authorities to adjust domestic fuel prices more frequently in response to international market movements.

Petrol Relief Scheme for Low-Income Consumers

On September 13, Prime Minister Shehbaz Sharif announced a proposed relief scheme offering a Rs100-per-litre subsidy on petrol.

The scheme targets motorcycles, three-wheeler rickshaws and cars with engine capacities of up to 800cc.

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The proposal estimates 11.8 million beneficiaries. It includes around 10 million two-wheeler users and 800,000 three-wheeler users.

Eligible motorcycle and rickshaw users would receive relief on up to 20 litres monthly. This would provide a maximum benefit of Rs2,000 per month.

Another one million owners of cars with engines up to 800cc would qualify for relief on 30 litres. Their maximum monthly benefit would reach Rs3,000.

Fuel Conservation Measures Remain in Focus

The government also reintroduced austerity and fuel conservation measures on September 17.

Under the notified restrictions, shops, markets, shopping malls, bazaars and other retail outlets must close by 9pm throughout the week.

Marriage halls, marquees and other commercial event venues must close by 10pm. Restaurants, cafes and food outlets can operate until 11pm.

Takeaway and home delivery services remain exempt from the timing restrictions. Standalone fruit and vegetable shops can also operate until 11pm.

Global Oil Market Faces Supply Risks

International developments continue to influence oil prices. OPEC+ decisions, Middle East tensions and sanctions on oil-producing countries can affect global supply.

Disruptions along major shipping routes, including the Strait of Hormuz and the Red Sea, also threaten oil shipments and raise freight costs.

Pakistan imports a large share of its petroleum requirements. As a result, changes in international oil prices can quickly affect domestic fuel costs.

Crude Oil Prices Rise Amid Middle East Tensions

International oil prices rose by more than 2 per cent on Friday, putting crude on course for a fourth consecutive monthly gain.

Brent crude gained 2.37 per cent to reach $117.56 per barrel. US West Texas Intermediate (WTI) rose 2.13 per cent to $104.17 per barrel.

The reported prices were recorded at 7:32pm UAE time.

Market concerns followed reports that a tanker had been struck in the Strait of Hormuz. The United States also reiterated the possibility of renewed hostilities with Iran.

Reports of missile attacks targeting Saudi Aramco added to supply concerns. These developments helped oil prices recover some earlier losses, according to market commentary cited in the report.

Meanwhile, the Wall Street Journal reported that US Vice President JD Vance had sent a letter to Mohsen Rezaei, head of Iran’s Supreme National Security Council, in an effort to revive peace negotiations.

UBS analyst Giovanni Staunovo said renewed diplomatic efforts to de-escalate the Middle East conflict were putting pressure on oil prices.

The latest diesel increase adds to fuel-cost pressures for consumers and businesses in Pakistan, while petrol prices remain unchanged under the three-day notification.