The federal government on Monday announced that fuel prices would remain unchanged for August 11, citing the non-publication of Platts prices on 10 August.

According to a notification issued by the Ministry of Petroleum, petrol would continue to be available at Rs327.62 per litre, while HSD would remain priced at Rs380.86 per litre, rates that were fixed for the period between August 8-10.

READ: Govt reduces petrol price by Rs2.20, HSD by Rs1.50 for next three days

On July 17, the government introduced a daily fuel price review mechanism amid volatility in global oil prices following renewed hostilities in the Middle East.

The daily fuel prices are based on a seven-day average of international market rates to align with international standards.

According to the Pakistan Economic Survey 2024-25, petroleum products constitute one of the country’s largest import categories, making the economy highly vulnerable to changes in global crude oil prices. Domestic refineries satisfy only part of national demand, while the remainder is met through imports of crude oil and refined petroleum products. Consequently, every increase in international oil prices raises Pakistan’s import bill, pressures foreign exchange reserves, and contributes to inflation.

Pakistan previously exercised significant government control over petroleum pricing through subsidies and administrative interventions. While these measures temporarily protected consumers, they imposed substantial fiscal costs. During periods of elevated global oil prices, successive governments delayed passing price increases to consumers, creating financial pressures for oil marketing companies, refineries, and the national budget. Large fuel subsidies widened fiscal deficits, increased public borrowing, and weakened macroeconomic stability.

Global geopolitical developments continue to pose significant risks. International oil prices are influenced by decisions taken by OPEC+, conflicts in the Middle East, sanctions on oil-producing nations, and disruptions in critical shipping routes such as the Strait of Hormuz and the Red Sea. Any interruption in these supply chains can immediately increase crude oil prices and freight costs. Since Pakistan imports the majority of its petroleum requirements, these developments quickly translate into higher domestic fuel prices.

Oil prices jumped over 4% today after Iran and the United ‌States traded demands for compensation, dimming prospects for a deal to reopen the Strait of Hormuz.

Brent crude futures were up $3.57, or 4.3%, at $87.13 a barrel by 01:17 p.m. ​EDT (1717 GMT). US West Texas Intermediate crude futures were up $3.36, or 4.3%, at $81.51.

“Crude futures (are) seeing gains in the early trade as the US/Iran peace deal looks to be delayed, along with further ‌strikes from Ukraine hitting Russian refineries and tankers in the Black Sea,” said Dennis Kissler, senior vice president of trading at BOK Financial.

Before the Iran conflict began in late February, about one-fifth of global daily oil and liquefied natural gas supplies flowed through the Strait of Hormuz.