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

On Monday, the government announced a hike in fuel prices, raising the cost of petrol by Rs12.90 per litre and high-speed diesel (HSD) by Rs3.72 per litre. Consequently, petrol will now retail at Rs358.77 per litre, while HSD will cost Rs381.77 per litre. The government maintains taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel. The revised prices are set to take effect on September 8 (Tuesday) according to the Petroleum Division's notification.

The HSD price has dropped from its April 3 peak of Rs520.35, which started climbing after the US-Iran war commenced on February 28. Petrol prices peaked at Rs458.41 on April 3, following an upward trend that began in the first week of March. Initially, the price of petrol was Rs266 in the early days of March.

Petroleum Minister Ali Pervaiz Malik revealed on July 17 that fuel prices would now be determined daily due to fluctuations in international market prices following the renewed conflict between Iran and the US. Previously, the government had been announcing weekly fuel price revisions since early March, along with conservation measures in anticipation of potential oil supply disruptions caused by the ongoing Middle East conflict. In April, the federal government also announced targeted relief measures to subsidize fuel.

Petrol, primarily utilized in private vehicles, two-wheelers, and rickshaws, affects the middle and lower-middle classes when its price fluctuates. Similarly, changes in diesel prices impact a broader section of the population, as it is primarily used in heavy transport, power plants, and large generators. Petrol and HSD are the principal revenue earners, with monthly sales of approximately 700,000 to 800,000 tonnes, compared to the 10,000 tonnes monthly demand for kerosene.