Pakistan hikes petrol price by Rs12.9 as Middle East tensions drive oil prices higher

KARACHI: Pakistan's Energy Ministry announced on Monday that it had increased the price of petrol by Rs12.9 per liter [$0.04] and high-speed diesel (HSD) by Rs3.72 per liter [$0.01] as intense fighting between the United States (US) and Iran over the weekend drove global oil prices higher. As per the ministry's notification, petrol will be sold for Rs358.77 ($1.29 per liter) while HSD will cost Rs381.77 ($1.38) per liter. The new prices will be applicable from Sept. 8, Tuesday, the notification added. Pakistan initially shifted from fortnightly to weekly price reviews of petroleum products after the US-Iran conflict erupted on Feb. 28. It later moved to daily adjustments in July as the volatility persisted. 'Based on revised petroleum pricing mechanism, issued by the federal government, Oil and Gas Regulatory Authority (OGRA) has revised the ex-depot prices of the petroleum products for 8th September, 2026,' the notification said. The price of oil in the global market rose higher after the US and Iran traded tit-for-tat strikes in the Gulf region over the weekend. Brent crude futures climbed 79 cents, or ​0.82 percent, to $97.07 a barrel by 08:12 a.m. Saudi time while US West Texas Intermediate (WTI) crude was at $92.28 a barrel, up 80 ​cents, or 0.87 percent. Brent rose 7.8 percent last week while WTI gained nearly 10 percent after the US ⁠and Iran resumed attacks and caused a reduction in oil flows through the Hormuz strait, where a fifth of ​the world's oil supply used to transit before the conflict began in February. Changes in prices of petroleum products directly impact inflation. Petrol in Pakistan is used in private cars, rickshaws and two-wheelers such as motorcycles. Diesel, meanwhile, is used in the heavy transport sector, used as fuel for power plants and large generators.