Pakistan's government has implemented a sharp three-day fuel price increase, raising petrol by Rs5.44 per litre and diesel by a staggering Rs31.05 per litre, effective immediately from July 18. The move, driven by renewed regional tensions and higher import costs, marks a significant shift in pricing strategy as authorities move to daily rate adjustments. Main Developments Petrol now costs Rs316.15 per litre, while high-speed diesel (HSD) has climbed to Rs354.35. The new prices will remain in place until July 20, after which daily revisions will take effect. Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be set on a daily basis, citing volatility in international markets following heightened hostilities between Iran and the US. The Oil and Gas Regulatory Authority (Ogra) has been tasked with determining these daily rates based on global trends. Read also: Guard Killed in Attack on Ex-AJK PM Tanveer Ilyas's Convoy Ogra will not only publish the rates but also disclose the factors influencing pump prices, offering greater transparency. The All Pakistan Dealers Association has rejected the daily pricing decision and plans to consider a protest next week. Background This latest increase reverses a period of relative decline. Diesel had fallen from a peak of Rs520.35 per litre on April 3, after rising from Rs281 per litre when US-Iran tensions escalated on February 28. Petrol peaked at Rs458.41 on April 3, up from Rs266 in early March. The government had been revising fuel prices weekly since early March, alongside conservation measures amid potential oil supply disruptions from the Middle East conflict. In April, targeted relief measures were announced to provide subsidised fuel for affected sectors. Currently, the government imposes about Rs105 per litre in duties on both products, including customs duty, petroleum levy, climate support levy, and inland freight equalisation margin. Petrol and HSD are major revenue earners, with combined monthly sales of 700,000 to 800,000 tonnes. Why It Matters Petrol is primarily used in private vehicles, rickshaws, and two-wheelers, directly impacting the middle and lower-middle classes. Diesel price changes affect the broader public through heavy transport, power plants, and large generators, influencing the cost of goods and electricity. The shift to daily pricing represents a major policy change, aiming to reflect real-time global fluctuations but risking consumer uncertainty and dealer pushback. The dealer association's potential protest could disrupt supply chains if unresolved. What's Next Daily fuel price revisions will begin after July 20, with Ogra issuing updates based on international market trends. The All Pakistan Dealers Association is expected to announce a protest plan next week, which could lead to temporary fuel shortages or price disputes at the pump. Continued monitoring of US-Iran tensions and global oil supply will determine whether prices stabilise or rise further. The government may consider additional relief measures if daily pricing causes public backlash.