The federal government on Friday reduced petrol and high-speed diesel (HSD) prices by Rs2.20 and Rs1.50 per litre, respectively, as international oil markets remained volatile amid the US-Iran conflict and disruption to shipping through the Strait of Hormuz.
With the latest reduction, petrol will be sold at Rs327.62 per litre, while HSD will be priced at Rs380.86 per litre. The government continues to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on HSD.
According to a Petroleum Division notification, the revised prices will remain in effect from August 8 to 10.
The Oil and Gas Regulatory Authority (Ogra) updates petroleum product prices daily on its website to ensure transparency and enable the immediate pass-through of international price fluctuations to consumers.
The daily pricing is based on a seven-day weekly average of international market prices to align with international standards, according to Petroleum Minister Ali Pervaiz Malik.
New fuel rates under daily price mechanism:
| Effective date | Products | Old rates | New rates | Changes in prices Rs/litre |
| August 8-10 | Petrol | 329.82 | 327.62 | -2.20 |
| August 8-10 | High-speed diesel | 382.36 | 380.86 | -1.50 |
The price of kerosene has been reduced by Rs1.50 per litre, bringing the new rate to Rs289.95, according to an OGRA notification issued on Saturday.
Amid volatility in global oil rates on the back of renewed hostilities in the Middle East, the government decided to switch to a daily fuel price review mechanism.
The government had introduced a weekly fuel price review system after the conflict in the Middle East began on February 28, when Israel and the United States attacked Iran, leading Tehran to shut the Strait of Hormuz — the main route before the war for around a fifth of global energy supplies.
Tensions have mounted since a fragile June truce between Tehran and Washington collapsed, reviving fears of full-scale war and disrupting energy flows through the Strait.
Previously, the petroleum rates were revised fortnightly. –Agencies
