Govt hikes petrol price by Rs13.18, high-speed diesel by Rs13.80 | The Express Tribune

The federal government on Friday increased the prices of petrol and high-speed diesel (HSD) by Rs13.18 and Rs13.80 per litre, respectively, for the next week, as global oil markets remain volatile following the recent escalation between the United States and Iran.

According to a press release issued by the Petroleum Division, the new price of petrol has been fixed at Rs310.71 per litre, while HSD will cost Rs323.30 per litre.

The revised prices will take effect from midnight on Friday.

Also Read: Govt cuts petrol, diesel prices by Rs1.97 per litre

The latest increase follows renewed tensions between the United States and Iran, which have once again pushed up global petroleum prices after both countries exchanged strikes this week. The escalation comes despite the two sides reaching an interim agreement last month to end a four-month conflict that had disrupted global energy supplies.

Over the past month, the government had reduced petroleum prices by up to Rs76 per litre following an easing of tensions and the signing of the Islamabad Memorandum of Understanding.

Last week, the government cut the prices of petrol and high-speed diesel (HSD) by Rs1.97 per litre each. The biggest reduction, however, came last month, when it slashed the price of petrol by Rs74 per litre and HSD by Rs67 per litre.

The latest increase came as global oil supply posted its largest monthly rise in months in June, with the recovery in shipments through the Strait of Hormuz boosting Gulf production, although output remained well below pre-war levels because of lingering security disruptions, the International Energy Agency (IEA) said on Friday.

According to the IEA’s latest Oil Market Report, global oil production nevertheless remained around 9.4 million barrels per day (bpd) below levels recorded before the US-Israel-Iran war, despite the sharp recovery in June.

The report said oil supply from Gulf producers rose by around 3.5 million bpd during the month after output partially recovered following the framework agreement between the United States and Iran. However, intermittent disruptions to shipping through the Strait of Hormuz persisted because of security concerns and continued reliance on US naval escorts, leaving regional oil production about 11.4 million bpd below pre-war levels.

Read More: Global oil production recovers as Hormuz shipments resume, IEA says

Production from the Opec+ group, comprising the Organisation of the Petroleum Exporting Countries (Opec) and its allies, increased by around 2.45 million bpd in June to 38.39 million bpd.

Saudi Arabia accounted for roughly 900,000 bpd of the increase, while Kuwait contributed around 630,000 bpd.

Output from non-OPEC+ producers rose by around 1.63 million bpd to 60.37 million bpd, with the United Arab Emirates accounting for more than half of the increase at approximately 940,000 bpd.