Petrol rises by Rs5 per litre while diesel jumps Rs30 as government shifts to daily fuel price reviews amid Middle East tensions.
The federal government has announced a substantial increase in petrol and diesel prices for July 18, 2026, amid rising international oil prices and growing geopolitical tensions in the Middle East.
The revised rates will remain effective only for Saturday as authorities have introduced a new mechanism for reviewing petroleum prices on a daily basis.
Under the latest revision, the price of petrol has been increased by Rs5 per litre. The new rate stands at Rs315.71 per litre, compared to the previous price of Rs310.71 per litre.
The government has imposed a much steeper increase on high-speed diesel (HSD), raising its price by Rs30 per litre. Following the adjustment, diesel will be available at Rs353.30 per litre, up from Rs323.30 per litre.
The sharp rise in fuel prices comes at a time when global energy markets are experiencing heightened volatility due to escalating tensions in the Middle East. International crude oil prices have witnessed significant fluctuations in recent weeks, prompting governments around the world to reassess fuel pricing mechanisms.
Speaking at a press conference on Friday, Petroleum Minister Ali Pervaiz Malik, accompanied by Information Minister Attaullah Tarar, said the government had decided to adopt a daily review system for petroleum prices to better respond to rapidly changing international market conditions.
According to the petroleum minister, concerns over global energy supplies have intensified as geopolitical developments in the Middle East continue to influence oil markets. He noted that diesel prices have been particularly affected by the surge in international petroleum rates.
Malik said the daily review mechanism would enable the government to ensure that domestic fuel prices accurately reflect movements in the global market.
The new approach is intended to provide greater flexibility in responding to sudden changes in international crude and refined petroleum product prices.
As part of the revised pricing framework, the federal government has assigned the Oil and Gas Regulatory Authority (OGRA) the responsibility of determining petroleum product prices every day based on prevailing international market trends and relevant economic factors.
The move marks a significant shift in Pakistan’s fuel pricing policy and is expected to have a direct impact on transportation costs, inflation, and overall economic activity in the coming days.