Pakistan's fuel pricing mechanism enters a new phase this week as the government transitions from weekly to daily rate revisions, responding to volatile global oil markets. The shift comes alongside modest price adjustments: petrol drops by Rs0.35 per litre while high-speed diesel rises by Rs5.71, reflecting continued regional instability. Main Developments Starting July 21, petrol will cost Rs315.80 per litre and high-speed diesel Rs360.06, effective Tuesday. The Petroleum Division announced these rates on Monday, attributing the changes to fluctuating global prices amid renewed hostilities in the Persian Gulf. Petroleum Minister Ali Pervaiz Malik confirmed that fuel prices would now be set on a daily basis by the Oil and Gas Regulatory Authority (Ogra), following a cabinet decision. This marks a departure from the weekly revision system introduced in early March. Read also: Pakistan's Iran Mediation Role Grows Amid Full-Scale War Background Diesel prices have fallen significantly from their peak of Rs520.35 per litre on April 3, after climbing from Rs281 per litre following the US-Iran conflict that began on February 28. Petrol reached its highest point at Rs458.41 on the same date, up from Rs266 in early March. The government had been implementing weekly price revisions since March alongside conservation measures, anticipating potential oil supply disruptions from the Middle East conflict. In April, targeted relief subsidies were also introduced for certain fuel consumers. Why It Matters Petrol price changes directly affect private transport users — including cars, rickshaws and motorcycles — hitting middle and lower-middle-class households hardest. Diesel fluctuations ripple through the broader economy, as it powers heavy transport, power plants and large generators. Together, petrol and high-speed diesel generate roughly 700,000 to 800,000 tonnes in monthly sales, making them the government's primary revenue earners in the fuel sector. Kerosene, by contrast, sees only about 10,000 tonnes in monthly demand. What's Next The All Pakistan Dealers Association has rejected the daily pricing decision and is considering a protest plan this week. Ogra will now assume responsibility for setting rates based on international market trends, with the first daily announcement expected shortly. Observers will watch whether daily adjustments stabilize consumer expectations or create new friction at the pump, as the government balances fiscal needs with public affordability concerns.