Govt raises petrol price by Re0.88 per litre, reduces high-speed diesel rate by Rs1.88

On Monday, the government raised petrol prices by Re0.88 per litre but decreased high-speed diesel (HSD) rates by Rs1.88 per litre. As a result, petrol will now retail at Rs393.64 per litre, while HSD will cost Rs397.76 per litre. The government retains a tax and duty rate of Rs114 per litre for petrol and Rs100 per litre for diesel.

These revised prices will take effect from Tuesday, October 6. The HSD price has dropped from a high of Rs520.35, which was recorded on April 3. Prior to this, the petrol price peaked at Rs458.41 also on April 3, after it started increasing from Rs266 in the first week of March. The conflict in the Middle East has led to a rise in fuel prices worldwide.

In response, the government has implemented austerity measures such as closing markets by 9pm and reducing fuel allocations for official vehicles by 50% for three months. Prime Minister Shehbaz Sharif announced a "relief scheme" for those using motorcycles, autos, and vehicles up to 800cc on September 13 to alleviate the burden of rising global oil prices.

Since February 28, when the US-Iran war began, the HSD price has been on an upward trend. The government had been announcing weekly revisions to fuel prices since early March due to fluctuations in international market prices. The federal government has appointed the Oil and Gas Regulatory Authority (Ogra) to decide fuel prices daily based on international market trends.

Petrol, mainly used in private transport, small vehicles, rickshaws, and two-wheelers, affects the middle and lower-middle classes. Diesel, on the other hand, primarily impacts the public as it is used in heavy transport, power plants, and large generators. Petrol and HSD are the biggest revenue earners, with monthly sales of 700,000 to 800,000 tonnes, compared to just 10,000 tonnes for kerosene.