Fuel prices in Pakistan have shifted once again, with diesel rising by Rs2.24 per litre while petrol saw a marginal decrease of 75 paisas per litre. The adjustments reflect ongoing volatility in global oil markets influenced by geopolitical tensions. Main Developments High-speed diesel (HSD) will now cost Rs390.62 per litre, while petrol is set at Rs335.06 per litre, according to a notification from the Petroleum Division. The new prices take effect on Thursday, July 30. Petrol Minister Ali Pervaiz Malik announced that fuel prices would now be determined on a daily basis, rather than weekly, due to fluctuations in international markets following renewed hostilities between Iran and the US. The government had previously implemented weekly revisions since early March. Read also: 3 factors behind Pakistan's Rs61bn power debt rise Background Both fuels have retreated significantly from their 2025 peaks. Diesel reached a high of Rs520.35 per litre on April 3, after rising from Rs281 per litre when the US-Iran conflict intensified on February 28. Petrol peaked at Rs458.41 on April 3, climbing from Rs266 in early March. The government in April introduced targeted relief measures, including subsidised fuel, to cushion the impact on consumers. The Oil and Gas Regulatory Authority (Ogra) has now been tasked with setting daily prices based on international trends, a decision endorsed by the cabinet and prime minister. Why It Matters Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, meaning price changes directly affect middle- and lower-middle-class households. Diesel, essential for heavy transport, power plants, and large generators, impacts the broader economy through transportation and electricity costs. Together, petrol and HSD generate significant government revenue, with monthly sales of approximately 700,000 to 800,000 tonnes—far exceeding kerosene's 10,000 tonnes per month. What's Next The daily pricing mechanism faces opposition from the All Pakistan Dealers Association, which has rejected the move and is considering a protest plan this week. The government's ability to maintain stable fuel supplies amid Middle East tensions remains a key question.