Higher international freight charges push up petrol and diesel prices, while taxes and margins remain unchanged.
Pakistan has increased petroleum prices effective for July 23, 2026, following a rise of more than three percent in international freight costs associated with importing refined fuel products.
The latest revision has resulted in higher prices for both petrol and high-speed diesel (HSD), adding to transportation and fuel expenses across the country.
According to the government’s notification, the price of petrol (motor spirit) has been increased by Rs6.40 per litre. The new petrol price has been set at Rs327.10 per litre, compared with the previous rate of Rs320.70 per litre. The adjustment reflects the impact of rising freight charges in the international market.
Similarly, the price of high-speed diesel has been raised by Rs7.60 per litre. Consumers will now pay Rs375.00 per litre for diesel, up from the previous price of Rs367.20 per litre. Diesel is a key fuel for the transportation, agriculture, and industrial sectors, making its price movement significant for the broader economy.
The increase in petroleum prices was primarily driven by higher freight costs. The total freight cost for petrol rose to $115.46 per barrel from $111.798 per barrel during the previous pricing cycle. This represents an increase of approximately 3.27 percent.
Likewise, freight costs for high-speed diesel increased to $150.00 per barrel from $145.517 per barrel, reflecting a rise of around 3.08 percent. The increase in shipping and logistics expenses contributed directly to the upward revision in domestic fuel prices.
Despite the latest adjustment, several key pricing components remain unchanged. The margins allocated to Oil Marketing Companies (OMCs) and petroleum dealers have not been revised. Similarly, the petroleum levy and climate support levy continue at their existing levels.
Market analysts note that fluctuations in global freight rates and international oil market conditions continue to influence Pakistan’s petroleum pricing mechanism.
As the country relies heavily on imported petroleum products, changes in shipping costs can significantly impact domestic fuel prices even when taxes and margins remain stable.