Govt raises high-speed diesel rate by Rs1.91 per litre

On Friday, the government increased the price of high-speed diesel by Rs1.91 per litre, maintaining the unchanged petrol rate at Rs377.71. Consequently, HSD will now cost Rs393.66 per litre. The government still imposes Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel. The new prices will be in effect from October 24 to October 26.

HSD prices have decreased from a high of Rs520.35 on April 3, rising since February 28 due to the US-Iran war. Petrol peaked at Rs458.41 on the same date after starting its rise from Rs266 in early March. In response to rising fuel costs due to the Middle East conflict, the government has implemented austerity measures, including market closures by 9pm and 50% cuts in fuel allocations for official vehicles for three months.

Prime Minister Shehbaz Sharif announced a relief scheme for motorcycles, autos, and vehicles up to 800cc on September 13 to alleviate the burden of global oil price increases. Fuel prices have been fixed daily since July 17 due to international market fluctuations. Previously, weekly revisions were made since early March. The federal government announced targeted relief measures in April, entrusting the Oil and Gas Regulatory Authority with deciding fuel prices daily based on international trends.

Petrol and HSD are the primary revenue sources, with monthly sales of 700,000 to 800,000 tonnes, compared to 10,000 tonnes for kerosene.