Govt announces 45 paisas increase in petrol, Rs1.16 in HSD price for August 14

The Pakistani government announced a 45 paisa increase in petrol and a 1.16 rupee rise in high-speed diesel (HSD) prices, effective August 14, 2025. The Ministry of Petroleum fixed petrol at Rs325.43 per litre and HSD at Rs383.95 per litre. This follows a recent decrease in petrol prices by 94 paisas and a hike in HSD prices by 54 paisas on August 13.

The government introduced a daily fuel price review mechanism in July 2025 due to volatility in global oil prices following Middle East hostilities. Petroleum products are a major import category for Pakistan, making the economy vulnerable to international market fluctuations. Domestic refineries only meet partial demand, with the rest met through crude oil and refined petroleum imports.

Every international oil price increase raises Pakistan's import bill, stresses foreign exchange reserves, and contributes to inflation. The economy previously relied heavily on government-controlled petroleum pricing through subsidies, which temporarily protected consumers but imposed fiscal costs. Oil marketing companies, refineries, and the national budget suffered financially during periods of high oil prices, as governments delayed price increases, increasing fiscal deficits and public borrowing.

Recent global geopolitical developments, such as concerns over supply disruptions following the Houthis' attacks on a Saudi Aramco refinery, can quickly increase crude oil prices and fuel costs in Pakistan.