Pakistan raises petrol, diesel prices as global oil remains near six-month highs

Pakistan has increased petrol and high-speed diesel prices for Tuesday, October 27, as international oil prices remain near six-month highs amid continuing tensions in the Middle East.

The government raised petrol prices by PKR 1.54 per liter to PKR 379.25, while high-speed diesel increased by PKR 2.16 to PKR 395.82, according to the Petroleum Division's latest notification.

The revised rates took effect on October 27 under the government's daily fuel pricing mechanism.

How have fuel prices changed in Pakistan?

As of October 26, petrol cost PKR 377.71 per liter, while high-speed diesel stood at PKR 393.66. Despite the latest increases, both fuels remain cheaper than at the beginning of October. Petrol has declined by PKR 8.15 per liter since October 1, while diesel is down PKR 4.53 over the same period.

Petrol and diesel remain below their early-April peaks of PKR 458.40 and PKR 520.35 per liter, respectively, but are substantially more expensive than before the Middle East conflict began on February 28.

Petrol has risen 46.9% from its pre-war price of PKR 258.17 per liter, while high-speed diesel is up 43.6% from PKR 275.70.

What is happening to international oil prices?

International oil prices edged lower Tuesday as diplomatic efforts involving Pakistan, Saudi Arabia, Turkiye and Iran raised hopes of easing tensions in the Middle East, Reuters reported.

Brent crude futures fell 0.57% to USD 115.15 per barrel, while US West Texas Intermediate crude declined 0.43% to USD 101.32 in early trading.

Despite the decline, Brent remained close to six-month highs after exceeding USD 117 per barrel last week, its highest level since April.

However, renewed attacks on Saudi Arabia by Houthis continued to raise concerns about oil supplies.

According to data cited by Reuters, October recorded the highest number of attacks on commercial shipping around the Strait of Hormuz and nearby waterways since monitoring began in 2017. Before the conflict erupted in February, the strait handled approximately one-fifth of global energy supplies.

Why do global oil prices matter for Pakistan?

Pakistan relies on imported petroleum products and crude oil, making domestic fuel prices sensitive to changes in international energy markets.

The Petroleum Division attributed the latest revisions to global developments, including changes in international Platts benchmark rates, premiums and associated costs.

The government introduced daily fuel price reviews in July amid heightened volatility in international energy markets. The pricing mechanism uses a seven-day average of international market rates.

Higher international prices can increase Pakistan's import bill and put pressure on domestic fuel prices.

What relief is available to motorists?

The government has allocated PKR 75 billion for a targeted fuel subsidy scheme covering eligible motorcyclists, three-wheeler users and owners of vehicles with engines of up to 800cc.

Prime Minister Shehbaz Sharif said on October 9 that more than 10 million people had benefited from the program.