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

On Wednesday, the government raised the price of petrol by Rs1.20 per litre, but decreased the price of high-speed diesel (HSD) by Re0.17 per litre. As a result, petrol will now cost Rs393.86 per litre, while HSD will be sold for Rs396.65 per litre. The government still imposes taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel. According to the Petroleum Division's notification, these new prices will take effect on October 15 (Thursday).

The price of HSD has dropped from its April 3 peak of Rs520.35, which had started rising from Rs281 per litre after the US-Iran war began on February 28. Before that increase, petrol had peaked at Rs458.41 on April 3 after its upward trend began in mid-March. To counter rising fuel costs amid the Middle East conflict, the government has implemented several austerity measures, including a 9pm market closure and a 50% reduction in fuel allocations for official vehicles for three months.

On September 13, Prime Minister Shehbaz Sharif announced a "relief scheme" aimed at easing the burden on motorcycle, auto, and up-to-800cc vehicle users. Earlier, on July 17, Petroleum Minister Ali Pervaiz Malik stated that fuel prices would now be fixed daily due to international market price fluctuations following renewed hostilities between Iran and the US.

Prior to this, fuel prices had been revised weekly since early March, alongside conservation measures amid potential oil supply disruptions from the ongoing Middle East conflict.

The federal government also announced targeted relief measures in April to provide subsidized fuel. Prime Minister Malik explained that the cabinet and the prime minister decided to entrust the Oil and Gas Regulatory Authority (Ogra) with determining fuel prices daily based on international market trends. As the most widely consumed fuels, petrol and high-speed diesel (HSD) generate significant revenue, with monthly sales of roughly 700,000 to 800,000 tonnes, compared to only 10,000 tonnes for kerosene.