Govt increases petrol price by Rs0.77, cuts high-speed diesel price by Rs1.03

On Monday, the government announced a price hike of Rs0.77 per litre for petrol and a reduction of Rs1.03 per litre for high-speed diesel (HSD), effective from September 1. The revised prices will see petrol retailing at Rs342.79 per litre and HSD at Rs370.41 per litre. Taxes and duties on petrol and diesel remain at Rs114 and Rs100 per litre, respectively.

The petroleum division's notification states that the new prices will replace the previous peak of Rs520.35 for HSD, recorded on April 3, and the earlier peak of Rs458.41 for petrol on the same date. The petrol price had begun its upward trend from Rs266 in early March following the US-Iran war on February 28. Previously, the government announced daily fuel prices due to international market price fluctuations.

Earlier, weekly revisions were made since March, alongside fuel conservation measures amid possible oil supply disruptions from the Middle East conflict. The federal government assigned the Oil and Gas Regulatory Authority (Ogra) the task of determining fuel prices daily based on global market trends. Petrol mainly fuels private transport, small vehicles, rickshaws, and two-wheelers, affecting middle and lower-middle classes.

Diesel, used in heavy transport, power plants, and large generators, impacts the general public due to price changes. Petrol and HSD are the primary revenue generators, with monthly sales of 700,000 to 800,000 tonnes compared to 10,000 tonnes for kerosene.