Govt jacks up petrol price by Rs12.90, HSD by Rs3.72

The Pakistani government announced on Monday a significant increase in fuel prices, raising the price of petrol by Rs12.90 per litre and high-speed diesel (HSD) by Rs3.72 per litre. After the revision, petrol will now retail at Rs358.77 per litre and HSD will cost Rs381.77 per litre. The government maintains taxes and duties at Rs114 per litre for petrol and Rs100 per litre for diesel.

The new fuel prices will take effect on Tuesday, September 8. The HSD price has since dropped from its April peak of Rs520.35, which was recorded on April 3. The price surge started at Rs281 per litre after the US-Iran war began on February 28. The rise in petrol prices peaked at Rs458.41 on April 3 following the same conflict. On July 17, Petroleum Minister Ali Pervaiz Malik revealed that fuel prices would now be determined daily due to international market price fluctuations resulting from renewed tensions between Iran and the US.

Previously, the government had been announcing weekly revisions to fuel prices since early March, along with conservation measures amid potential oil supply disruptions due to the Middle East conflict. In April, the federal government also announced targeted relief measures to provide subsidized fuel. The prime minister and cabinet decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of setting fuel prices daily based on international market trends.

Petrol is primarily used in private transportation, small vehicles, rickshaws, and two-wheelers, and price changes affect the middle and lower-middle classes. Diesel impacts the public at large, as it is mainly utilized in heavy transport, power plants, and large generators. Both fuels are major revenue earners, with monthly sales ranging from 700,000 to 800,000 tonnes of petrol and 10,000 tonnes of HSD, compared to just 10,000 tonnes monthly demand for kerosene.