Diesel price nears Rs400 as govt adds over a rupee to petrol, HSD rates

On Wednesday, the government raised the price of petrol and high-speed diesel (HSD) by Rs1.85 and Rs1.75 per litre respectively, bringing HSD to a near Rs400. Petrol will retail at Rs377.91 per litre and HSD at Rs399.82 per litre on October 29, according to the Petroleum Division's notification. The government retains taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.

Jamaat-i-Islami (JI) chief Hafiz Naeemur Rehman met Prime Minister Shehbaz Sharif on Tuesday to discuss providing public relief by abolishing the levy. The two sides agreed to form a joint committee to consider expanding the fuel relief scheme for motorcycle, rickshaw, and vehicle owners up to 800cc since September 17. Rehman threatened to march to Islamabad in protest if the government did not announce major relief by mid-November.

Pakistan Petroleum Dealers Association urged consumers not to panic buy, warning that excessive purchases could create market distortions. Senators expressed concerns over fuel supply despite Minister of State for Finance and Revenue Bilal Azhar Kayani stating there were no supply issues. HSD prices have fallen from a peak of Rs520.35 on April 3, while petrol peaked at Rs458.41 on the same day.

The government has reintroduced austerity measures due to rising fuel prices amid the Middle East conflict. Markets will close by 9pm, and official vehicle fuel allocations have been cut by 50% for three months. On September 13, Prime Minister Shehbaz announced a relief scheme for motorcycles, autos, and vehicles up to 800cc to alleviate the burden of rising global oil prices.

Petroleum Minister Ali Pervaiz Malik announced daily fuel price fixing due to international market fluctuations after Iran-US hostilities. Prior to this, the government had weekly revisions since early March and conservation measures due to possible oil supply disruptions. Targeted relief measures were announced in April, giving the Oil and Gas Regulatory Authority (Ogra) responsibility to decide fuel prices daily based on international trends.

Petrol prices affect the middle and lower-middle classes, while diesel impacts the public at large due to heavy transport, power plants, and large generator usage. Petrol and HSD generate about 700,000 to 800,000 tonnes of monthly sales, compared to 10,000 tonnes for kerosene.