Govt reduces petrol price by Rs3.13, increases HSD by Rs3.74

On Friday, the government decreased the price of petrol by Rs3.13 per litre, while simultaneously raising the cost of high-speed diesel (HSD) by Rs3.74 per litre. Under this revision, a litre of petrol now sells for Rs345.87, whereas HSD costs Rs378.05 per litre. The government still imposes taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.

According to the Petroleum Division's notice, these new prices will be in effect from September 5 (Saturday) to September 7 (Monday). HSD's price had fallen from its April 3 peak of Rs520.35, and had begun to increase from Rs281 per litre after the US-Iran conflict began on February 28. Petrol's price reached its highest point of Rs458.41 on April 3 following a surge from Rs266 in early March.

On July 17, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would henceforth be determined on a daily basis due to international market price fluctuations following renewed tensions between Iran and the US. Previously, the government had been announcing weekly fuel price adjustments since early March, along with fuel conservation measures in anticipation of potential oil supply disruptions caused by the ongoing Middle East conflict.

In April, the federal government also introduced targeted relief measures to subsidize fuel. The Pakistani government decided to empower the Oil and Gas Regulatory Authority (Ogra) to decide fuel prices daily based on international market trends, with the cabinet and prime minister making this decision. Petrol is primarily utilized in private vehicles, small vehicles, rickshaws, and two-wheelers, and price changes directly affect the middle and lower-middle classes.

Likewise, alterations in diesel prices significantly impact society as a whole, as it is predominantly used in the heavy transport sector, power plants, and large generators. Petrol and high-speed diesel (HSD) are the primary revenue sources, with monthly sales ranging from 700,000 to 800,000 tonnes, as opposed to the 10,000 tonnes of monthly demand for kerosene.