Petrol price down by Rs0.84 per litre, high-speed diesel rate reduced by Rs2.63

The government announced a reduction in petrol prices on Thursday, lowering the cost by Rs0.84 per litre. High-speed diesel (HSD) prices were also decreased by Rs2.63 per litre. Consequently, a litre of petrol will now cost Rs389.28, while HSD will be priced at Rs412.12. The government retains a tax rate of Rs114 per litre for petrol and Rs100 per litre for diesel. These new prices will commence on September 25 (Friday), as announced by the Petroleum Division.

The HSD price has dropped from the April 3 peak of Rs520.35. Its previous price of Rs281 per litre began to rise following the escalation of the US-Iran war on February 28. The petrol price peaked at Rs458.41 on April 3, after beginning its upward trend from Rs266 in the first week of March.

To address the rising fuel prices due to the Middle East conflict, the government has implemented austerity measures. Markets are now required to close by 9pm, and fuel allocations for official vehicles have been reduced by 50% for three months. Prime Minister Shehbaz Sharif also introduced a relief scheme for users of motorcycles, autos, and vehicles up to 800cc to alleviate the burden of increasing global oil prices. On September 13, the minister announced this relief measure.

Previously, on July 17, Petroleum Minister Ali Pervaiz Malik informed that fuel prices would be determined daily due to fluctuations in international market prices following the renewed tensions between Iran and the US. Prior to this, the government had been announcing weekly revisions to fuel prices since early March. In April, the federal government announced targeted relief measures to provide subsidised fuel, with the Oil and Gas Regulatory Authority (Ogra) now responsible for daily fuel price decisions 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 the public, as it is used in the heavy transport sector, power plants, and large generators. Both petrol and high-speed diesel (HSD) contribute significantly to government revenue, with annual sales of 700,000 to 800,000 tonnes, compared to only 10,000 tonnes for kerosene.