The government has raised petrol prices by Rs6.39 and diesel prices by Rs7.83 per litre to reflect global market volatility and regional tensions in the Persian Gulf.The new rates, effective July 23, set petrol at Rs327.12 and diesel at Rs375.04 per litre.This follows negotiations where the All Pakistan Petroleum Pump Owners Association deferred a strike after discussions with the petroleum minister.The diesel price has decreased from a peak of Rs520.35 in April but rose sharply after the US-Iran conflict began in February.Petrol prices peaked at Rs458.41 in April after a gradual increase from Rs266 in early March.The petroleum minister announced daily fuel price adjustments to align with international market trends, a shift from previous weekly revisions.The decision faces opposition from the All Pakistan Dealers Association, which plans protests.

Fuel price changes significantly impact middle and lower-middle classes, as petrol is widely used in private transport, while diesel affects heavy industries and power generation.Monthly sales of petrol and diesel reach 700,000-800,000 tonnes, far exceeding kerosene demand.The government also introduced targeted subsidies and delegated pricing authority to Ogra.