Govt raises petrol price by Rs4.10 per litre, HSD by Rs6.41 per litre

The Pakistani government announced on Tuesday a price hike of Rs4.10 per litre for petrol and Rs6.41 per litre for high-speed diesel (HSD). This revision brings the retail price of petrol to Rs384.34 per litre and HSD to Rs415.83 per litre. The government continues to impose taxes and duties at Rs114 per litre on petrol and Rs100 per litre on diesel.

The new fuel prices will take effect on September 16 (Wednesday), as per the Petroleum Division's notification. The HSD price has dropped from its April 3 peak of Rs520.35, which rose from Rs281 per litre after the US-Iran war began on February 28. Meanwhile, the petrol price peaked at Rs458.41 on April 3 after beginning its upward trend from Rs266 in early March.

In an effort to mitigate the impact of rising global oil prices, Prime Minister Shehbaz Sharif announced a relief scheme for motorcycle, auto, and low-capacity vehicle owners on September 13. Motorcycle and auto owners will receive Rs100 per litre relief on a monthly quota of 20 litres, while owners of vehicles up to 800cc will get the same relief on a 30-litre monthly quota.

Fuel prices were set to be determined daily from July 17 due to market fluctuations following the renewed hostilities between Iran and the US, as announced by Petroleum Minister Ali Pervaiz Malik. Prior to this, the government had been making weekly price adjustments since early March, along with measures to conserve fuel amid potential oil supply disruptions caused by the ongoing Middle East conflict.

The federal government announced targeted relief measures in April, entrusting the Oil and Gas Regulatory Authority (Ogra) with the responsibility of determining fuel prices daily based on international market trends. Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, affecting the middle and lower-middle classes.

Diesel prices also impact a larger segment of the population as it is widely used in heavy transport, power plants, and large generators. Both petrol and HSD are the main revenue earners, with monthly sales of around 700,000 to 800,000 tonnes, compared to just 10,000 tonnes for kerosene.