By Our Correspondent
ISLAMABAD: The federal government’s latest increase in petroleum prices is expected to trigger a fresh wave of inflation, with higher transport fares, freight charges and production costs likely to affect consumers and businesses across Pakistan.
The government has raised the price of petrol by Rs6.39 per litre to Rs327.12, while high-speed diesel (HSD) has been increased by Rs7.83 per litre to Rs375.04, effective from July 23.
Economists say the increase will have a wider impact than just fuel costs. Petrol is primarily used by private motorists, motorcycles, rickshaws and ride-hailing services, meaning the hike is likely to increase commuting expenses for millions of Pakistanis.
The increase in HSD is expected to have an even greater economic impact. Diesel powers trucks, buses, agricultural machinery and many industrial operations, making it a key driver of freight costs and supply chains. Higher diesel prices often lead to increased transportation expenses, which are eventually reflected in the prices of food, construction materials and other essential goods.
Public transport operators and logistics companies are also expected to review fares and freight rates, potentially increasing the cost of moving passengers and goods across the country.
The latest revision comes as Pakistan has shifted to a daily petroleum pricing mechanism, allowing fuel prices to fluctuate in line with international oil markets. The move is intended to reflect global price changes more quickly but could also expose consumers to more frequent price volatility.
The increase follows renewed uncertainty in global energy markets amid regional tensions in the Persian Gulf, where disruptions to oil supplies have contributed to fluctuating crude oil prices.
Although petroleum dealers recently postponed a planned nationwide strike after negotiations with the government, industry representatives continue to oppose the daily pricing mechanism, warning that frequent price changes could create uncertainty for dealers and consumers alike.
Analysts believe that if international crude oil prices remain elevated, Pakistan may witness further adjustments in domestic fuel prices in the coming weeks, adding to inflationary pressures and increasing the cost of living.
