Higher global oil prices push petrol up by Rs20.35 per litre and diesel by Rs32.98, while taxes and levies remain unchanged.
ISLAMABAD: Petrol and high-speed diesel (HSD) prices in Pakistan have risen sharply within just 10 days, driven by a surge in international oil prices and higher import costs, according to official petroleum pricing documents.
A comparison of the government notifications effective July 21, 2026 and July 31, 2026 shows that the retail price of petrol increased by Rs20.35 per litre, while high-speed diesel became Rs32.98 per litre more expensive.
The increase was largely attributed to higher international benchmark prices for refined petroleum products. Meanwhile, the petroleum levy, climate support levy, dealer margins and oil marketing company (OMC) margins remained unchanged during the period.
Petrol price rises above Rs336 per litre
The retail price of petrol increased from Rs315.80 per litre on July 21 to Rs336.15 per litre on July 31, representing an increase of Rs20.35 per litre.
The sharp rise followed a significant increase in the average Platts Arab Gulf benchmark price, which climbed from $97.99 per barrel to $112.43 per barrel, an increase of $14.44 per barrel.
As a result:
Component July 21, 2026 July 31, 2026 Change
Retail price Rs315.80/litre Rs336.15/litre +Rs20.35
Platts Arab Gulf Mean $97.99/bbl $112.43/bbl +$14.44
Cost at Karachi Port Rs190.59/litre Rs211.03/litre +Rs20.44
Ex-refinery/import price Rs207.34/litre Rs229.17/litre +Rs21.83
IFEM Rs6.95 Rs5.47 -Rs1.48
Petroleum Levy Rs80.00 Rs80.00 No change
Climate Support Levy Rs5.00 Rs5.00 No change
Although the Inland Freight Equalisation Margin (IFEM) declined by Rs1.48 per litre, the reduction was insufficient to offset the higher international oil prices.
Diesel records an even steeper increase
High-speed diesel experienced a much larger increase, with the retail price rising from Rs360.06 per litre to Rs393.04 per litre, an increase of Rs32.98 per litre.
The average Platts Arab Gulf benchmark price for diesel climbed from $136.32 per barrel to $155.19 per barrel, an increase of $18.87 per barrel, resulting in substantially higher import costs.
Component July 21, 2026 July 31, 2026 Change
Retail price Rs360.06/litre Rs393.04/litre +Rs32.98
Platts Arab Gulf Mean $136.32/bbl $155.19/bbl +$18.87
Cost at Karachi Port Rs247.62/litre Rs280.50/litre +Rs32.88
Ex-refinery/import price Rs263.30/litre Rs296.18/litre +Rs32.88
IFEM Rs4.43 Rs4.53 +Rs0.10
Petroleum Levy Rs70.82 Rs70.82 No change
Climate Support Levy Rs5.00 Rs5.00 No change
The increase in international diesel prices translated almost directly into higher import and ex-refinery costs, pushing the retail diesel price above Rs393 per litre.
Global oil prices drive domestic increase
The official pricing documents indicate that the latest rise in petroleum prices was overwhelmingly driven by developments in the international oil market.
Key factors include:
• International Platts Arab Gulf benchmark prices increased significantly for both petrol and diesel.
• The average State Bank of Pakistan (SBP) exchange rate remained broadly stable at around Rs278 per US dollar, indicating minimal exchange-rate impact on domestic prices.
• The petroleum levy remained unchanged at Rs80 per litre on petrol and Rs70.82 per litre on diesel.
• The climate support levy remained unchanged at Rs5 per litre on both fuels.
• Sales tax continued at zero, with both petrol and diesel remaining exempt from sales tax.
The comparison shows that the latest increase in petroleum prices was primarily the result of rising international oil prices rather than changes in domestic taxation or government-imposed levies.