Govt raises petrol price by Rs1.54 per litre, high-speed diesel rate by Rs2.16

On Monday, the government raised the price of petrol by Rs1.54 per litre and high-speed diesel (HSD) by Rs2.16. The new petrol price will be Rs379.25 per litre, while HSD will cost Rs395.82 per litre. Tax and duties on petrol remain at Rs114 per litre, while they are Rs100 per litre for diesel. The adjustments take effect from October 27 (Tuesday).

The HSD price has decreased from its April 3 peak of Rs520.35, with its rate starting to rise after the US-Iran war began on February 28. The petrol price peaked at Rs458.41 on the same date after beginning its increase from Rs266 in early March. In response to rising fuel prices due to the Middle East conflict, the government has reintroduced austerity measures.

This includes closing markets by 9pm and reducing fuel allocations for official vehicles by 50% for three months. Prime Minister Shehbaz Sharif also announced a relief scheme for motorcycle, auto, and vehicles up to 800cc users to ease the burden of increasing global oil prices. Since February, the government has been announcing daily fuel price changes due to fluctuating international market prices following renewed tensions between Iran and the US.

Previously, weekly revisions were made since early March along with fuel conservation measures in anticipation of potential oil supply disruptions due to the Middle East conflict. The federal government previously announced targeted subsidies to provide low-cost fuel. The ministry stated that Ogra would now determine fuel prices daily based on international market trends.

Petrol, primarily used in private transport, small vehicles, rickshaws, and two-wheelers, impacts middle and lower-middle-class families. Diesel, used by the public, heavy transport, power plants, and large generators, also affects the broader population. Both fuels are major revenue generators, with monthly sales ranging from 700,000 to 800,000 tonnes of petrol and 10,000 tonnes of HSD, compared to 10,000 tonnes monthly demand for kerosene.