Pakistan Raises Petrol and Diesel Prices Amid Global Volatility

The Government of Pakistan raised fuel prices twice between October 23 and October 26, driven by international market volatility and regional instability. On October 23, the government increased high-speed diesel (HSD) by Rs1.91 per litre to Rs393.66, while petrol prices remained unchanged at Rs377.71.

By October 26, the government implemented a second round of increases, raising petrol by Rs1.54 per litre to Rs379.25 and HSD by another Rs2.16 per litre to Rs395.82. This resulted in a total diesel increase of Rs4.07 per litre over the period. The Oil and Gas Regulatory Authority attributed these adjustments to changes in Platts benchmark rates, premiums, and incidental costs.

These domestic hikes occurred as global Brent crude futures reached six-month highs following Houthi attacks in Saudi Arabia and an oil spill in the United Arab Emirates. While global crude prices dipped slightly by October 26 due to hopes of easing hostilities between the United States and Iran, Saudi Arabian attacks continued to pressure markets. To support lower-income citizens, Prime Minister Shehbaz Sharif previously introduced a special relief scheme providing fuel discounts for motorcycles, three-wheelers, and small-engine cars.