Pakistani motorists are facing another fuel price shock as the government pushed up petrol and diesel rates from August 25, adding fresh pressure on household and transport expenses.

In latest update, OGRA said petrol has been increased by 39 paisas per litre, taking the new price to Rs341.98 per litre. Diesel has seen a much sharper jump of Rs2.40 per litre, with its price reaching Rs370.69 per litre.

The increase comes at a time when international oil markets are witnessing renewed volatility amid escalating tensions involving the United States and Iran.

Global crude prices actually moved lower in early Asian trading on Monday, with investors booking profits after a strong rally last week. WTI crude fell 2.16% to $85.18 per barrel, while Brent crude dropped 2.19% to $92.32 per barrel.

Both benchmarks had surged by more than 5% last week, driven by growing concerns over Iranian oil exports, heightened US-Iran tensions and a major slowdown in tanker traffic through the Strait of Hormuz.

Market sentiment remains cautious as traders await further details of a new US sanctions package targeting Iran. Any fresh restrictions on Iranian crude exports or disruption to shipping through the strategic waterway could add further uncertainty to global oil supplies.

Despite Monday’s decline, the latest retreat in crude prices is being viewed mainly as profit-taking after last week’s rally, rather than evidence that geopolitical risks have substantially eased.

For Pakistani consumers, the latest domestic adjustment means petrol will now cost nearly Rs342 per litre, while diesel has moved close to Rs371 per litre, keeping fuel prices firmly in focus as global oil markets remain under pressure from geopolitical developments.