Govt increases petrol price by Rs6.88 per litre, HSD by Rs5.62 per litre

On Wednesday, the government raised the price of petrol by Rs6.88 per litre and high-speed diesel (HSD) by Rs5.62 per litre, according to a Petroleum Division notification. The new retail prices for petrol and HSD are Rs391.22 and Rs421.45 per litre, respectively. The government maintains a tax and duty levy of Rs114 and Rs100 per litre on petrol and diesel, respectively.

OGRA stated that the revision was primarily driven by higher petrol and diesel prices in the international market. The price of HSD had fallen from its April 3 peak of Rs520.35, having begun its rise at Rs281 per litre following the US-Iran war on February 28. The price of petrol peaked at Rs458.41 on April 3 after starting its upward trend from Rs266 in early March.

Prime Minister Shehbaz Sharif announced a relief scheme for motorcycle, auto, and 800cc vehicle owners on September 13, offering Rs100 and Rs150 per litre relief on a 20-litre and 30-litre monthly quota, respectively. Fuel prices have been set daily since July 17 due to international market price fluctuations following renewed hostilities between Iran and the US.

Prior to this, the government issued weekly fuel price revisions since early March and implemented conservation measures amid potential oil supply disruptions from the Middle East conflict. Targeted relief measures were also announced in April to provide subsidized fuel. Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, affecting the middle and lower-middle classes.

Diesel has a broader impact, as it is mainly utilized in heavy transport, power plants, and large generators. Petrol and HSD collectively generate about 700,000 to 800,000 tonnes monthly, while kerosene sees only 10,000 tonnes monthly demand.