Govt raises petrol price by Rs1.20 per litre, reduces high-speed diesel rate by Re0.17

On Wednesday, the government increased the price of petrol by Rs1.20 per litre, while lowering the price of high-speed diesel by Re0.17 per litre. Following this adjustment, petrol will now retail for Rs393.86 per litre, and HSD will cost Rs396.65 per litre. The government maintains a tax of Rs114 per litre on petrol and Rs100 per litre on diesel.

The revised prices will take effect starting October 15 (Thursday), as per the Petroleum Division's notification. The HSD price has dropped from a record high of Rs520.35 on April 3. Prior to the price hike, it began rising from Rs281 per litre in February after the US-Iran war commenced on February 28. Meanwhile, petrol's price peaked at Rs458.41 on April 3 after starting its upward trend from Rs266 in early March.

In response to the surge in fuel prices due to the Middle East conflict, the government has implemented several 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 announced a relief scheme on September 13 to help users of motorcycles, autos, and vehicles up to 800cc cope with the rising global oil prices.

The government also decided to fix fuel prices on a daily basis starting July 17 due to fluctuations in international market prices following the renewed hostilities between Iran and the US. Prior to this, the government had been announcing weekly revisions to fuel prices since early March, along with fuel conservation measures amid potential oil supply disruptions caused by the Middle East conflict.

The federal government had also announced targeted relief measures to provide subsidized fuel, appointing the Oil and Gas Regulatory Authority (Ogra) to determine daily fuel prices based on international market trends. Petrol's primary use is in private transport, small vehicles, rickshaws, and two-wheelers, affecting the middle and lower-middle classes.

Diesel's price changes also impact the general public, as it is mainly used in heavy transport, power plants, and large generators. Petrol and high-speed diesel (HSD) are the main revenue earners, with monthly sales of 700,000 to 800,000 tonnes, compared to only 10,000 tonnes of monthly demand for kerosene.