Pakistan Raises Fuel Prices Amid Renewed Middle East Tensions
Pakistan on Friday increased petrol and high-speed diesel prices by more than Rs13 per liter, reversing a series of recent reductions as renewed military tensions in the Middle East caused volatility in global oil prices. The Ministry of Energy’s Petroleum Division announced the revised ex-depot prices for the week starting July 11, 2026. Petrol was raised by Rs13.18 per liter to Rs310.71, while high-speed diesel increased by Rs13.80 per liter to Rs323.30.
Background of Price Reversals
Pakistan had reduced fuel prices in June and again last week after crude oil prices fell following an interim peace understanding between the United States and Iran. However, fresh military exchanges between the two countries have unsettled oil markets, leading to price increases. The country imports the bulk of its petroleum requirements and has been reviewing domestic fuel prices weekly since the beginning of the US-Iran war, based on international oil prices and the rupee-US dollar exchange rate.
Impact on Economy and Inflation
Fuel price changes have a broad impact on inflation by affecting transportation costs, electricity generation, and the prices of goods across the economy. The latest hike is expected to increase the financial burden on consumers and businesses, potentially reversing some of the gains from earlier reductions. According to the Ministry of Energy, the adjustments reflect the volatility in global oil markets and the need to pass on costs to consumers.
