Pakistan's government has increased petrol and diesel prices by Rs6.39 and Rs7.83 per litre respectively, passing on the impact of renewed regional hostilities in the Persian Gulf. The new rates take effect Thursday, July 23, pushing petrol to Rs327.12 per litre and high-speed diesel to Rs375.04. Main Developments The Petroleum Division issued a notification Wednesday confirming the price adjustments, which follow a period of daily price revisions announced earlier by Petroleum Minister Ali Pervaiz Malik. The shift to daily pricing was prompted by volatile international markets after fresh conflict erupted between Iran and the United States. Earlier this week, the All Pakistan Petroleum Pump Owners Association (APPPOA) deferred a planned nationwide strike for two weeks after renewed talks with the petroleum minister. The strike threat had followed a breakdown in negotiations over daily petroleum pricing. Read also: 3 Key Weather Trends: Monsoon Rains Hit Northern Pakistan Background Fuel prices have fluctuated sharply since late February, when the US-Iran conflict initially pushed diesel from Rs281 per litre upward. Diesel peaked at Rs520.35 on April 3, while petrol reached its high of Rs458.41 on the same date after starting at Rs266 in early March. The government had been announcing weekly revisions since early March, alongside conservation measures to guard against potential oil supply disruptions from the Middle East conflict. In April, federal authorities introduced targeted relief through subsidised fuel for certain sectors. Why It Matters Petrol powers private cars, rickshaws, and two-wheelers, meaning price hikes directly squeeze middle- and lower-middle-class households. Diesel, used in heavy transport, power plants, and large generators, affects broader economic costs—from freight to electricity generation. 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 of monthly demand. What's Next The Oil and Gas Regulatory Authority (Ogra) has been tasked with setting daily fuel prices based on international market trends, a decision the cabinet and prime minister approved. However, the All Pakistan Dealers Association has rejected the daily pricing model and is considering a protest plan this week. With global oil markets still sensitive to Persian Gulf tensions, further price adjustments remain possible. The APPPOA's two-week strike deferral leaves open the possibility of renewed industrial action if pricing disputes are not resolved.