Key Points
- Petrol prices in Pakistan were increased by 4.40 Rupees, and diesel by 3.62 Rupees.
- Due to attacks in the Red Sea and the blockage at the Strait of Hormuz, Brent oil rose by 6 percent.
- The government and fuel station owners reached an agreement to postpone the strike by two weeks.
- The increase in oil prices also dragged down global stock markets and raised borrowing costs.
By the Numbers
The Pakistan government has increased the prices of petrol and high-speed diesel (HSD) to reflect fluctuations in global oil prices. Effective from July 24, the price of petrol was increased by 4.40 Rupees per liter, and the price of diesel by 3.62 Rupees per liter. With the new regulation, petrol reached 331.52 Rupees, and HSD reached 378.66 Rupees.
The main reason for the price increase is that global oil supply is at risk due to Houthi attacks on tankers in the Red Sea and Iran's near-complete closure of the Strait of Hormuz. The per-barrel price of Brent crude oil skyrocketed to 100.50 dollars, following a 6 percent increase after the attacks. These geopolitical tensions negatively affected not only the energy markets but also the global stock markets in the US and Europe, raising concerns about economic instability.
On the other hand, the Pakistan government reached an agreement with fuel dealers to postpone their nationwide planned strike by two weeks. Authorities promised to resolve the dealers' concerns regarding commission demands and the monthly pricing mechanism. While global oil prices are expected to remain high, the government's daily pricing system, which closely monitors market volatility, is prompting consumers to be prepared for frequent price hikes.
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Frequently Asked Questions
- What are the new fuel prices in Pakistan?
- With the new tariff effective from July 24, petrol has been updated to 331.52 Rupees and high-speed diesel (HSD) to 378.66 Rupees.
- Why have global oil prices risen so much?
- Increasing tensions in the Middle East, Houthi attacks in the Red Sea, and Iran's attempt to close the Strait of Hormuz have created serious concerns over oil supply, driving prices up.
- Will fuel dealers in Pakistan go on strike?
- No. As a result of talks with the Petroleum Minister, fuel station owners postponed the planned strike for two weeks upon the promise that their demands would be addressed.
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Read the full story at the sourceminutemirror.com.pkHow we produce our content →This story across sources · 5 · 4 countries
- CBS News·
- Lefkada Today·
- La Voix du Nord·
- Jalopnik·
- Vzglyad·