Pakistan hikes diesel amid West Asia crisis; essential goods likely to cost more

Pakistan government has raised the price of high-speed diesel (HSD) by Rs2.29 per litre while leaving petrol unchanged for the next three days. Following the revision, petrol will sell at Rs377.91 per litre and HSD at Rs402.96 per litre. According to a notification from the Oil and Gas Regulatory Authority (OGRA), the new prices stay in effect until November 2.

The increase comes amid volatility in global oil prices driven by renewed hostilities in West Asia. News outlet Geo News quoted Petroleum Minister Ali Pervaiz Malik saying the daily prices are based on a seven-day average of international market prices, in line with international practice. The conflict began on February 28, when Israel and the United States attacked Iran, prompting Tehran to close the Strait of Hormuz, which carried around a fifth of global energy supplies before the war. A fragile June truce between Tehran and Washington has since collapsed, reviving fears of full-scale war and disrupting energy flows through the Strait.

OGRA has begun publishing daily petroleum prices on its website to improve transparency. The government had introduced a weekly review after the conflict began; before that, prices were revised fortnightly. An official document seen by Geo News outlines the cabinet-approved framework. OGRA will issue daily ex-depot prices for petrol and HSD based on the previous seven days' average international prices. It can announce them without prior approval from the prime minister or the federal government. Prices notified on Fridays will remain unchanged on Saturdays and Sundays. OGRA will publish daily Platts reference prices from July 1, 2026. The petroleum levy cannot exceed the limit approved by the cabinet, and any change in the levy rate requires Finance Division approval.

Implications of price hike

As the primary fuel for commercial fleets, public transit, and agricultural machinery, high-speed diesel directly impacts supply chain overheads. Price increases escalate freight costs across the goods transport sector, creating a trickle-down inflationary effect on essential supplies and consumer goods.