Govt hikes petrol price by Rs5.44, diesel by Rs31.05 per litre

• Petrol price reaches Rs316.15 per litre: Petroleum Division.
• High-speed diesel price climbs to Rs354.35 after fresh hike.
• Daily review system replaces weekly fuel price mechanism.

The federal government on Friday announced a fresh increase in petroleum prices, raising petrol by Rs5.44 per litre and high-speed diesel (HSD) by Rs31.05 per litre.

The fresh hike has raised petrol price from Rs310.71 to Rs316.15 per litre, and diesel from Rs323.30 to Rs354.35 per litre.

The Petroleum Division issued a notification stating that the new fuel prices will take effect on July 18 and remain applicable until July 20.

The revised fuel prices were announced after the federal government enforced a daily review mechanism for the petroleum products rates.

The move to daily price reviews follows the government's earlier decision to conduct weekly petroleum price adjustments after tensions escalated following the US-Israeli conflict with Iran on February 28.

In the previous weekly review, the government increased the prices of petrol and high-speed diesel (HSD) by Rs13.18 and Rs13.80 per litre, respectively.

According to a previous notification, new petrol and HSD prices have been set at Rs310.71 and Rs323.30 per litre, respectively.

Petrol is mainly used by commuters in small vehicles, rickshaws and two-wheelers. Higher fuel prices significantly impact the budgets of middle and lower-middle-class households, who rely on petrol for daily travel.

On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.

The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.