Govt raises petrol price by Rs4.61 per litre, reduces HSD rate by Rs1.96

The government raised the price of petrol by Rs4.61 per litre on Monday, while decreasing the rate of high-speed diesel (HSD) by Rs1.96 per litre. As a result, petrol will now cost Rs393.75 per litre, and HSD will be sold for Rs422.08 per litre. The government still applies a tax of Rs114 per litre on petrol and Rs100 per litre on diesel.

The revised prices will take effect from September 22 (Tuesday). The HSD price has dropped from the April 3 peak of Rs520.35, increasing after the US-Iran war began on February 28. The petrol price peaked at Rs458.41 on April 3 following the same conflict. To counter rising fuel costs, the government has implemented austerity measures like closing markets by 9pm and reducing fuel allocations for official vehicles by 50% for three months.

On September 13, Prime Minister Shehbaz Sharif introduced a relief scheme for motorcycle, auto, and 800cc vehicle owners to help manage the burden of rising global oil prices. The Prime Minister's Office stated that motorcycle and auto owners would receive a Rs100 per litre relief on a monthly quota of 20 litres, while 800cc vehicle owners would get the same relief on a monthly quota of 30 litres.

In July, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be set daily due to fluctuations in international market prices following renewed tensions between Iran and the US. Previously, the government announced weekly fuel price changes since early March, alongside conserving fuel due to potential disruptions in oil supply caused by the ongoing Middle East conflict.

The federal government also announced targeted relief measures to subsidize fuel in April. The Pakistan Petroleum Division notified the new prices, which will be applicable from September 22 (Tuesday). As petrol is mainly used in private transport, small vehicles, rickshaws, and two-wheelers, its price changes significantly affect the middle and lower-middle classes.

Diesel price fluctuations also impact the general public, as it is primarily used in the heavy transport sector, power plants, and large generators. Petrol and high-speed diesel (HSD) generate the most revenue, with monthly sales of 700,000 to 800,000 tonnes, while kerosene sales amount to only around 10,000 tonnes.