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

On September 26, the government announced a price increase of Rs2.02 per litre for petrol, raising the retail price to Rs391.30 per litre. Conversely, high-speed diesel (HSD) saw a reduction of Rs3.59 per litre, bringing its cost down to Rs408.53 per litre. This change in pricing is effective from September 26 to September 28. Tax and duty rates remain at Rs114 per litre for petrol and Rs100 per litre for diesel.

The new petrol prices represent a decline from the peak of Rs458.41 observed on April 3, following a rise that began at Rs266 in the first week of March. Prior to this, HSD had peaked at Rs520.35 on April 3, after an upward trajectory started at Rs281 per litre after the US-Iran war began on February 28.

In response to the escalating fuel prices amidst the Middle East conflict, the government has reintroduced several austerity measures. These include restricting market hours to close by 9pm and reducing fuel allocations for official vehicles by 50% for three months. Moreover, Prime Minister Shehbaz Sharif introduced a relief scheme on September 13 to alleviate the burden of rising global oil prices on users of motorcycles, autos, and vehicles up to 800cc.

Fuel prices have been fixed daily due to fluctuations in international market prices, following renewed hostilities between Iran and the US, announced by Petroleum Minister Ali Pervaiz Malik on July 17. Previously, weekly revisions were made since early March, alongside conservation efforts amid potential oil supply disruptions due to the Middle East conflict.

The government also announced targeted relief measures providing subsidized fuel in April. The Ogra has been tasked with determining daily fuel prices based on international market trends.

Petrol primarily fuels private transport, small vehicles, rickshaws, and two-wheelers, impacting the middle and lower-middle classes. Meanwhile, diesel, used extensively in heavy transport, power plants, and large generators, influences the general public. Together, petrol and HSD account for about 700,000 to 800,000 tonnes in monthly sales, compared to the 10,000 tonnes monthly demand for kerosene.