Govt raises petrol price by Rs5.02 per litre, HSD by Rs5.28 amid rising global oil prices

On September 12, the government raised the price of petrol by Rs5.02 per litre and high-speed diesel (HSD) by Rs5.28 per litre, according to a Petroleum Division notification. The new retail prices for petrol will be Rs375.82 per litre and for HSD, Rs403.32 per litre. These revised prices are set to remain in effect until September 14.

The government continues to apply taxes and duties, with Rs114 per litre on petrol and Rs100 per litre on diesel. The new HSD price has dropped from its April 3 peak of Rs520.35, a level that had begun to rise from Rs281 per litre following the US-Iran war on February 28.

Prior to the escalation in hostilities between Iran and the US on February 28, the price of petrol peaked at Rs458.41 on April 3, after climbing from Rs266 in the early days of March. On July 17, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be determined on a daily basis due to the volatility in international market prices. This decision superseded the previous weekly revisions that had been in place since early March.

In April, the federal government also announced targeted relief measures, providing subsidised fuel. The prime minister and cabinet decided to entrust the Oil and Gas Regulatory Authority (Ogra) with the responsibility of setting fuel prices on a daily basis based on international market trends. Petrol, which is a primary fuel for private transport, small vehicles, rickshaws, and two-wheelers, has a significant impact on the middle and lower-middle classes due to its price fluctuations.

Diesel, used extensively in heavy transport, power plants, and large generators, also experiences price changes that affect a broad segment of the population. Together, petrol and HSD represent the main revenue sources, with monthly sales of approximately 700,000 to 800,000 tonnes, compared to a mere 10,000 tonnes of kerosene demand per month.