Diesel price rises sharply by Rs5.71 per litre, while petrol records a slight reduction under the new daily pricing mechanism.
The federal government has announced revised petrol and diesel prices for July 21, 2026, reflecting ongoing fluctuations in international oil markets.
The latest adjustment comes under Pakistan’s newly adopted daily fuel pricing mechanism, which was introduced to respond more quickly to changes in global energy prices.
According to the updated notification, the price of petrol (motor spirit) has been marginally reduced by Rs0.35 per litre. The new petrol price has been fixed at Rs315.80 per litre compared to the previous rate of Rs316.15 per litre.
In contrast, consumers using high-speed diesel (HSD) will face a significant increase in fuel costs. The government has raised the diesel price by Rs5.71 per litre, bringing the new rate to Rs360.06 per litre from the previous Rs354.35 per litre.
The Oil and Gas Regulatory Authority (OGRA) is now publishing petroleum product prices on a daily basis through its official platform.
The move is aimed at enhancing transparency and ensuring that changes in international oil prices are promptly reflected in domestic fuel rates.
Petroleum Minister Ali Pervaiz Malik stated that the daily pricing framework is based on a seven-day rolling average of international petroleum prices.
The mechanism has been designed to align Pakistan’s fuel pricing system with international practices and improve market responsiveness.
The shift to daily fuel price revisions follows heightened uncertainty in global oil markets triggered by renewed geopolitical tensions in the Middle East. International crude oil prices have remained volatile due to concerns over energy supply disruptions and escalating regional conflicts.
Pakistan initially moved from a fortnightly to a weekly fuel price review system after tensions intensified in the Middle East earlier this year.
The conflict, involving the United States, and Iran, significantly affected global energy markets and raised concerns about the security of oil shipments through the Strait of Hormuz.
With fears of further disruptions to global oil supplies, authorities believe that daily fuel price adjustments will help better manage the impact of international market fluctuations on Pakistan’s economy and consumers. The government is expected to continue monitoring global developments closely while updating domestic fuel prices accordingly.