ISLAMABAD: Petrol and high-speed diesel prices have been reduced in Pakistan, offering limited relief to consumers after a series of rapid fuel price adjustments linked to volatility in international oil markets.

Under the latest revision, petrol has been cut by Rs3.19 per litre, bringing its price to Rs329.82 per litre. The price of high-speed diesel (HSD) has also been reduced by Rs1.50 per litre to Rs382.36, according to a notification issued by the Ministry of Petroleum.

The latest move comes only a day after the government revised fuel prices for Aug. 6, when petrol became Rs4.45 per litre more expensive while HSD was reduced by Rs2 per litre.

The frequent changes are linked to Pakistan’s newly introduced daily fuel pricing mechanism. The government began reviewing fuel prices on a daily basis from July 17 amid heightened volatility in global oil markets following renewed tensions in the Middle East.

Under the new system, domestic petroleum prices are calculated using a seven-day average of international oil prices, allowing local rates to respond more quickly to movements in global markets.

Pakistan remains heavily dependent on imported petroleum products, making domestic fuel costs particularly sensitive to changes in international crude prices. Higher global oil prices can increase the country’s import bill, put pressure on foreign exchange reserves and add to inflationary pressures.

International oil markets have remained sensitive to geopolitical developments, particularly concerns surrounding major shipping routes such as the Strait of Hormuz and the Red Sea. Any disruption to energy shipments through these routes could push global crude prices higher and place renewed pressure on fuel prices in importing countries.