Pakistan's fuel prices have entered a new era of daily volatility. The government raised petrol by Rs4.40 and high-speed diesel by Rs3.62 per litre on Thursday, directly passing on the impact of renewed Middle East hostilities. This marks a departure from the weekly revisions adopted just months ago, as officials scramble to keep pace with global oil fluctuations. Main Developments Petrol now costs Rs331.52 per litre, while diesel stands at Rs378.66. The government collects Rs110 in taxes and duties on each litre of petrol and Rs96 on diesel. Diesel has dropped sharply from its April 3 peak of Rs520.35, while petrol peaked at Rs458.41 on the same date. Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be fixed daily due to international market swings. The Oil and Gas Regulatory Authority (Ogra) will take over pricing decisions based on global trends. The new rates took effect on Friday, July 24. Read also: Why Pakistan's Polio Drop Hides a Cross-Border Risk Background Diesel costs began climbing from Rs281 per litre after the US-Iran conflict erupted on February 28. Petrol followed a similar trajectory, rising from Rs266 in early March. The government initially adopted weekly price revisions in early March as a response to oil supply disruption risks from the Middle East conflict. In April, the federal government introduced targeted relief measures to provide subsidised fuel. Monthly sales of petrol and diesel total roughly 700,000 to 800,000 tonnes, making them the government's major revenue earners compared to just 10,000 tonnes of kerosene demand. Why It Matters Petrol powers private transport, rickshaws, and two-wheelers, directly affecting the middle and lower-middle classes. Diesel drives heavy transport, power plants, and large generators, meaning its price ripples through the broader economy. The shift to daily pricing introduces unpredictability for consumers and businesses alike. The All Pakistan Dealers Association has already rejected the daily pricing decision and is considering a protest plan this week. The move could strain relations between the government and fuel retailers. What's Next Ogra will now set prices daily based on international market trends. The government has not specified how long this system will last. Dealers' protests could disrupt supply chains if unresolved. Global oil price movements, driven by Iran-US tensions, will remain the key factor determining future adjustments.