Government Increases Petrol and Diesel Prices, Introduces Daily Fuel Pricing Mechanism

Islamabad: The federal government has announced a fresh increase in petroleum prices, raising the cost of both petrol and high-speed diesel with effect from midnight.

According to a notification issued by the Petroleum Division, the price of petrol has been increased by Rs. 1.63 per liter, taking the new price to Rs. 335.81 per liter.

The price of high-speed diesel has also been increased by Rs. 1.55 per liter, bringing the new rate to Rs. 388.38 per liter.

The revised prices will remain effective for one day, after which new rates may be announced under the government’s revised pricing mechanism.

Following the increase in fuel prices, reports indicate that the prices of essential commodities, including flour, cooking oil, pulses, vegetables, sugar, and milk, have also risen in various markets, adding to inflationary pressures on consumers.

Meanwhile, the federal cabinet has approved a new daily petroleum pricing system under which the Oil and Gas Regulatory Authority (OGRA) will announce the ex-depot prices of petrol and diesel on a daily basis.

Under the new mechanism, fuel prices will be calculated based on the average international market prices over the previous seven trading days. OGRA will issue the revised prices without requiring prior approval from the Prime Minister or the federal government. The new system is intended to align domestic fuel prices more closely with global market trends.