Govt increases petrol price by Rs3.05, diesel by Rs5.37

On Thursday, the government raised the price of petrol by Rs3.05 per litre and high-speed diesel by Rs5.37 per litre. Retail prices will now be Rs370.80 per litre for petrol and Rs398.04 per litre for HSD. The government still collects Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel. The new prices come into effect on September 11 (Friday), according to a Petroleum Division notification.

Diesel prices had risen from Rs281 per litre on April 3 to a peak of Rs520.35 on the same date, following the start of the US-Iran war on February 28. Petrol prices peaked at Rs458.41 on April 3, after beginning their upward trend from Rs266 in early March. Petroleum Minister Ali Pervaiz Malik announced on July 17 that fuel prices would be determined daily due to international market fluctuations caused by renewed hostilities between Iran and the US.

Previously, the government had been announcing weekly fuel price revisions since early March and implementing measures to conserve fuel amid potential oil supply disruptions due to the Middle East conflict. In April, the federal government announced targeted relief measures to subsidize fuel. The Cabinet and Prime Minister decided to entrust the Oil and Gas Regulatory Authority (Ogra) with daily fuel pricing decisions based on international market trends after the announcement.

Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, impacting the middle and lower-middle classes. Diesel affects the public at large, as it is mainly used in heavy transport, power plants, and large generators. Both fuels generate significant revenue, with monthly sales of 700,000 to 800,000 tonnes for petrol and just 10,000 tonnes for kerosene.