Petrol up Rs42, diesel Rs56 per litre since July 1 amid sharp price fluctuations

ISLAMABAD: Petrol and high-speed diesel prices in Pakistan have recorded significant fluctuations since July 1, with petrol becoming Rs42.09 and diesel Rs56.82 per litre more expensive by August 22.

Petrol was priced at Rs299.50 per litre at the beginning of July, while high-speed diesel (HSD) was available at Rs311.47. On July 4, the government reduced the prices of both products by Rs1.97 per litre, bringing petrol down to Rs297.53 and diesel to Rs309.50.

Fuel prices subsequently moved sharply upward. On July 11, petrol rose to Rs310.71 per litre and HSD to Rs323.30. By July 18, petrol had reached Rs316.15, while diesel climbed to Rs354.35 per litre.

The government later introduced a daily petroleum pricing mechanism, allowing fuel prices to be adjusted more frequently in response to movements in international oil markets. Under the new mechanism, petrol rose to Rs320.73 per litre and HSD to Rs367.21 on July 22.

The upward trend continued during the final week of July. Petrol reached Rs327.12 on July 23, Rs331.52 on July 24 and Rs336.15 by July 31. Diesel recorded an even steeper increase, rising to Rs375.04 on July 23 and Rs393.04 by the end of the month.

Prices saw a modest correction at the beginning of August. On August 1, petrol was reduced by 12 paisas to Rs336.03 per litre, while HSD fell by 66 paisas to Rs392.38.

The decline continued in the first half of August, with petrol dropping to Rs328.56 on August 5 and reaching Rs325.43 by August 14. Prices then reversed course, with petrol rising to Rs331.20 on August 18 and Rs334.54 on August 19.

On August 20, petrol stood at Rs337.51 per litre, while HSD fell sharply to Rs363.06. The following day, petrol increased by 27 paisas and diesel by Rs1.64.

The latest increase, effective August 22, pushed petrol up by Rs3.81 to Rs341.59 per litre, while HSD increased by Rs3.59 to Rs368.29.

Overall, petrol has risen by Rs42.09 per litre, or around 14.1%, since July 1, while HSD has increased by Rs56.82, or approximately 18.2%.

The sharp movements in fuel prices have come amid volatility in international oil markets and the government’s shift to a daily pricing mechanism, under which domestic petroleum prices are adjusted in response to changes in global oil prices.