Dubai crude jumps over 10% to $88.99/barrel, testing Pakistan's new daily pricing mechanism

Dubai crude, a benchmark closely watched across Asia including Pakistan, climbed $8.2 to $88.99 a barrel on Tuesday, a 10.2% gain. According to The News, citing industry sources, higher gasoline and gasoil prices, freight costs and import premiums could raise Pakistan's landed cost of petroleum products. If these international conditions persist, petrol and high-speed diesel prices at home may also come under upward pressure in time.

The new daily pricing setup is meant to soften the blow for households, because its averaging method means one sharp day's move does not automatically reach fuel stations. Oil-sector experts say that cushion could help if the rally fades quickly. However, the mechanism now faces its first serious test amid unusually volatile global oil markets.

Cnergyico's vice chairperson, Usama Qureshi, said the outcome will hinge on how international markets perform over the coming trading sessions. He cautioned that if Dubai crude holds near $89 or climbs higher, while fuel, freight and premium costs stay elevated, domestic prices will remain under pressure. Experts added that uninterrupted fuel supply matters just as much for an oil-importing nation, and Pakistan has managed similar disruptions before through joint efforts by government and refiners.