Petrol prices in Pakistan increased sharply on Friday after the federal government introduced a new daily fuel pricing mechanism and cited rising international oil prices driven by escalating tensions between the United States and Iran.

According to the Petroleum Division, the government increased the price of petrol by Rs5.44 per litre to Rs316.15 per litre, while high-speed diesel (HSD) rose by Rs31.05 per litre to Rs354.35 per litre.

The revised prices take effect from midnight on Friday.

Earlier in the day, Petroleum Minister Ali Pervaiz Malik, accompanied by Information Minister Ataullah Tarar, announced that the government would revise petroleum prices on a daily basis instead of following the previous weekly schedule.

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Malik said the government adopted the new mechanism to improve transparency while protecting the state from financial risks caused by rapid fluctuations in international oil markets.

He acknowledged that the latest increase would burden consumers but said the decision was necessary to safeguard the country’s economic interests.

Pakistan had already shifted from fortnightly to weekly fuel price revisions in early March after conflict between the United States and Iran disrupted global energy markets. The government has now moved to daily adjustments in response to increased market volatility.

International crude oil prices climbed on Friday as fighting between the United States and Iran intensified, raising concerns over supply disruptions across the Gulf.

Brent crude rose $3.98, or 4.73%, to $88.21 a barrel, while US West Texas Intermediate (WTI) gained $3.80, or 4.81%, to $82.75 a barrel.

Both global benchmarks remained on track for weekly gains of about 16%, reflecting growing concerns over oil supplies.

Analysts said the conflict has heightened fears of disruptions to key shipping routes, including the Strait of Hormuz, through which roughly 20% of global oil supplies normally pass. Attacks on energy infrastructure and threats to regional exports have also tightened fuel markets and pushed prices higher worldwide.

The latest escalation saw US forces strike bridges and an airport in Iran, while Tehran launched attacks on US facilities across the Middle East, including its first direct strike in Syria, extending the conflict for a sixth consecutive night.