High-speed diesel price crosses Rs400 with Re0.85 increase; no change in petrol rate

On Thursday, the government raised the price of high-speed diesel by Re0.85 per litre, bringing its retail cost to Rs400.67 per litre. Conversely, petrol prices remained unchanged at Rs377.91 per litre. These revised rates will take effect from October 30 (Friday), as notified by the Petroleum Division. The government still imposes taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.

Jamaat-i-Islami chief Hafiz Naeemur Rehman met with Prime Minister Shehbaz Sharif on Tuesday to discuss easing the public burden by abolishing the levy on fuel. The two parties agreed to form a joint committee to examine the expansion of the fuel relief scheme offered to motorcycle, rickshaw, and vehicle owners up to 800cc, which began on September 17.

Rehman threatened to protest in Islamabad if the government did not announce significant relief by mid-November. The Pakistan Petroleum Dealers Association advised consumers against panic buying, as excessive purchases could disrupt the market. Meanwhile, senators expressed concerns over fuel supply despite Minister of State for Finance and Revenue Bilal Azhar Kayani stating that there were no supply issues.

The high-speed diesel price has declined from its peak of Rs520.35 on April 3, following a surge after the US-Iran war began on February 28. Petrol prices peaked at Rs458.41 on April 3 after starting its upward trend from Rs266 in early March. The government has implemented austerity measures in response to the rising fuel prices, including market closures by 9pm and a 50% reduction in fuel allocations for official vehicles for three months.

Following a "relief scheme" announced by Prime Minister Shehbaz on September 13, targeted subsidies have been provided to motorcycle, auto, and vehicle owners up to 800cc since Sept 17. The federal government introduced daily fuel price fixing due to international market price fluctuations after renewed hostilities between Iran and the US.

The petroleum minister also decided to entrust the Oil and Gas Regulatory Authority (Ogra) with determining fuel prices on a daily basis based on international market trends. Petrol, used mainly in private transport, small vehicles, rickshaws, and two-wheelers, affects the middle and lower-middle classes, while diesel, used in heavy transport, power plants, and large generators, impacts the general public.

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