Govt reduces petrol price by Rs1.70 per litre, HSD by Rs3.12 per litre

The Pakistani government has cut the price of petrol by Rs1.70 per litre and high-speed diesel (HSD) by Rs3.12 per litre, effective from September 23. Under the revised pricing, a litre of petrol will cost Rs392.05, while HSD will be Rs418.96 per litre. The government still collects Rs114 per litre in taxes and duties on petrol, and Rs100 per litre on diesel. The new prices will replace the peak rates of Rs520.35 for HSD, reached on April 3, and Rs458.41 for petrol, also recorded on April 3.

The price decrease comes amid escalating tensions in the Middle East, particularly following the US-Iran conflict that began on February 28. HSD prices had started rising from Rs281 per litre, prompting the government to implement austerity measures. These measures include closing markets by 9pm and reducing fuel allocations for official vehicles by 50% for three months.

Additionally, Prime Minister Shehbaz Sharif announced a relief scheme for motorbike, auto, and 800cc vehicle owners to mitigate the impact of rising global oil prices.

The decision to adjust fuel prices was made daily due to fluctuations in international market prices, following renewed hostilities between Iran and the US. Previously, fuel prices were revised weekly since early March. The federal government had also introduced targeted fuel subsidies in April, entrusting the Oil and Gas Regulatory Authority (Ogra) with the responsibility of determining daily fuel prices based on global market trends.

Petrol and HSD are the primary sources of revenue for the government, with monthly sales ranging between 700,000 to 800,000 tonnes for petrol and 10,000 tonnes for diesel, compared to just 10,000 tonnes for kerosene.