Govt reduces petrol price by Rs1.7 per litre, HSD by Rs3.12 per litre

The Pakistani government recently reduced the price of petrol and high-speed diesel by Rs1.70 per litre and Rs3.12 per litre respectively. As a result, petrol will now retail at Rs392.05 per litre and HSD will cost Rs418.96 per litre. Despite lowering taxes and duties to Rs114 per litre for petrol and Rs100 per litre for diesel, the government maintains that the new prices will commence from September 23.

This adjustment comes after HSD reached a peak of Rs520.35 on April 3, and petrol peaked at Rs458.41 on the same date. The recent price hike began after the US-Iran conflict erupted on February 28. In response to the rising fuel costs, the government has implemented austerity measures, including limiting market hours to 9pm and cutting fuel allocations for official vehicles by 50 percent for three months.

Additionally, a "relief scheme" was introduced for motorcycle, auto, and 800cc vehicle owners on September 13 to ease the burden of escalating global oil prices. Prime Minister Shehbaz Sharif's announcement followed a decision by the government to fix fuel prices daily due to international market fluctuations. The federal government had previously announced weekly price revisions since March, alongside fuel conservation efforts in anticipation of potential oil supply disruptions stemming from the Middle East conflict.

The government also announced targeted relief measures to provide subsidized fuel in April. Petrol is primarily used in private transportation, impacting the middle and lower-middle class, while diesel affects the wider public, playing a crucial role in transportation, power generation, and large-scale generators. As the largest revenue earners, petrol and HSD generate monthly sales of about 700,000-800,000 tonnes, compared to the 10,000 tonnes monthly demand for kerosene.