Govt reduces petrol price by Rs2.27 per litre, high-speed diesel rate by Rs3.56

The Pakistani government has lowered the price of petrol by Rs2.27 per litre and high-speed diesel (HSD) by Rs3.56 per litre, as of September 29. Following the cuts, petrol will be sold for Rs389.03 per litre and HSD for Rs404.97 per litre. The government still imposes taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.

The Petroleum Division's notification confirms these revised prices take effect from September 29. The HSD price has dropped from its April peak of Rs520.35, which had started climbing after the US-Iran war began on February 28. Petrol's price peaked at Rs458.41 on April 3 after beginning a rise from Rs266 in early March.

In response to escalating fuel prices amid the Middle East conflict, the government has implemented cost-cutting measures. Retail outlets must close by 9pm and fuel allocations for official vehicles have been slashed by 50% for three months. On September 13, Prime Minister Shehbaz Sharif also unveiled a relief scheme aimed at easing the financial strain on motorcycle, auto, and small vehicle owners due to soaring global oil prices.

Earlier, on July 17, Petroleum Minister Ali Pervaiz Malik revealed that fuel prices would now be determined daily due to international market volatility stemming from renewed tensions between Iran and the US. Prior to this, the government had been altering fuel prices weekly since early March, alongside fuel conservation measures amid potential supply disruptions caused by the Middle East crisis.

The federal government also launched targeted relief measures in April to provide subsidized fuel. The Ogra, the Oil and Gas Regulatory Authority, now has the authority to set fuel prices daily based on international market trends. Petrol, used primarily in personal vehicles, motorcycles, and two-wheelers, has a profound impact on the middle and lower-middle classes, while diesel affects a broader population, including heavy transport, power plants, and large generators.

As the chief revenue generators, petrol and HSD sales account for approximately 700,000 to 800,000 tonnes monthly, compared to the 10,000 tonnes demanded for kerosene.