The government on Tuesday jacked up the prices of petroleum products by up to Rs7.15 per litre with effect from Wednesday (today) as the All-Pakistan Petrol Pumps Owners Association (APPPOA) announced a countrywide strike after talks with the government on a proposed daily fuel pricing mechanism reached a deadlock.

Pakistan's motorists barely had time to get used to the government's new daily fuel pricing system when another increase hit the pumps. Diesel and petrol prices are again on the rise, and petroleum dealers are threatening a nationwide strike. Consumers are thus faced with two unknowns – rising fuel prices and the prospect of supply disruptions.

Under the revised pricing mechanism notified by the Oil and Gas Regulatory Authority (OGRA), the price of high-speed diesel (HSD) has been increased by Rs7.15 per litre, taking it from Rs360.06 to Rs367.21. Motor spirit (MS) or petrol has also become costlier with its price rising by Rs4.93 per litre to Rs320.73. The new rates were effective from July 22, 2026.

The recent revision follows the government’s removal of the existing fortnightly petroleum pricing mechanism and introducing a daily adjustment mechanism. Diesel prices had already been hiked a day earlier while petrol prices were marginally reduced, underscoring the volatility consumers may face under the new policy.

Meanwhile petroleum dealers are strongly opposed to the decision. The All-Pakistan Petroleum Products Owners Association (APPPOA) has announced an indefinite countrywide strike after talks with the government failed to address concerns over dealer margins and the daily pricing formula. The association says petrol pumps across the country will remain closed until its demands are met.

The Pakistan Petroleum Dealers Association (PPDA) has also opposed the policy, saying its daily price updates are not workable for retailers. The group has said further action is still on the cards including joining the strike while it waits for the government to respond through OGRA.

As fuel prices continue to rise almost daily and tensions between the government and dealers increase, Pakistan’s petroleum sector seems to be heading for another period of uncertainty, with both businesses and consumers closely watching the government’s next move.

Credit: Independent News Pakistan (INP)