Govt raises petrol price by Rs2.31 per litre, high-speed diesel rate by Re0.78 per litre

The Pakistani government increased the price of petrol by Rs2.31 per litre and high-speed diesel (HSD) by Re0.78 per litre on Thursday. The new prices will take effect on October 9 (Friday). Petroleum taxes and duties remain at Rs114 per litre for petrol and Rs100 per litre for diesel. The government had been levying these rates since early March.

The HSD price had dropped from a previous peak of Rs520.35 on April 3, after starting to rise from Rs281 per litre following the US-Iran conflict on February 28. The petrol price had also peaked at Rs458.41 on April 3 after beginning to increase from Rs266 in the first week of March. In response to the rising fuel costs caused by the Middle East conflict, the government has implemented several austerity measures, including market closures at 9pm and a 50% reduction in fuel allocations for official vehicles for three months.

The Prime Minister announced a "relief scheme" for motorcycles, autos, and vehicles up to 800cc on September 13 to help ease the burden of higher global oil prices. Since July 17, fuel prices have been determined daily due to international market fluctuations. The federal government also introduced targeted fuel subsidies earlier in April.

Petrol, used mainly in private transport, has a significant impact on the middle and lower-middle classes, while diesel, used in heavy transport, power plants, and large generators, affects the public at large. Together, petrol and HSD account for roughly 700,000 to 800,000 tonnes of monthly sales, while kerosene demand is about 10,000 tonnes per month.