Petrol price raised by Rs2.02 per litre, high-speed diesel rate reduced by Rs3.59

The government's recent decision on September 25 raised the petrol price by Rs2.02 per liter, while simultaneously reducing the price of high-speed diesel (HSD) by Rs3.59 per liter. Consequently, the retail price of petrol is now Rs391.30 per liter, and HSD costs Rs408.53 per liter. Despite cutting taxes and duties on petrol and diesel, the government maintains a tax rate of Rs114 per liter for petrol and Rs100 per liter for diesel.

The revised prices will be enforced from September 26 (Saturday) to September 28 (Monday). The HSD price has decreased from a record high of Rs520.35 recorded on April 3, and had begun to rise from Rs281 per liter after the outbreak of the US-Iran war on February 28. The petrol price peaked at Rs458.41 on April 3 after starting on a rising trend from Rs266 in the first week of March.

In response to the escalating fuel prices due to the ongoing Middle East conflict, the government has reintroduced 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 announced a "relief scheme" for motorcycle, auto, and 800cc vehicle users to alleviate the burden of rising global oil prices.

Fuel prices have been fixed daily since July 17 due to fluctuations in international market prices following renewed hostilities between Iran and the US. The federal government had been announcing weekly price revisions since early March and implemented fuel conservation measures amid possible oil supply disruptions due to the Middle East conflict.

The government has also assigned the Oil and Gas Regulatory Authority (Ogra) the responsibility of determining fuel prices daily based on international market trends. Petrol primarily fuels private transport, small vehicles, rickshaws, and two-wheelers, and price changes affect middle and lower-middle classes. Diesel, used in heavy transport, power plants, and large generators, impacts the public at large.

Petrol and HSD are the primary revenue earners, with monthly sales of 700,000 to 800,000 tonnes and 10,000 tonnes, respectively, compared to 10,000 tonnes for kerosene.