Govt hikes petrol price by Rs0.27, high-speed diesel by Rs1.64

On Thursday, the government increased the price of petrol by Rs0.27 per litre and high-speed diesel (HSD) by Rs1.64. With this revision, petrol will now cost Rs337.78 per litre and HSD will be priced at Rs364.70 per litre. The government still collects taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel. The new prices will take effect from August 21 (Friday), as outlined in the Petroleum Division's notification.

The price of HSD has dropped from its peak of Rs520.35, which was recorded on April 3. It had begun to rise from Rs281 per litre after the US-Iran war commenced on February 28. Meanwhile, petrol's price peaked at Rs458.41 on April 3 after beginning its upward trend from Rs266 in early March. In response to fluctuations in international market prices due to renewed hostilities between Iran and the US, the government announced that fuel prices would now be determined on a daily basis.

Earlier, Petroleum Minister Ali Pervaiz Malik had stated that fuel prices would be set daily due to market volatility following the renewed conflict between Iran and the US. The government had previously announced weekly revisions to fuel prices since early March, alongside measures to conserve fuel amid potential oil supply disruptions resulting from the ongoing Middle East conflict.

The federal government also announced targeted relief measures in April to provide subsidized fuel. The cabinet and prime minister decided to entrust the Oil and Gas Regulatory Authority (Ogra) with the responsibility of deciding fuel prices daily based on international market trends.