High-speed diesel price dips by Rs4 per litre, petrol by Rs3

On Thursday, the government decreased the price of petrol by Rs3 per litre and high-speed diesel (HSD) by Rs4, marking their eighth consecutive reduction. Consequently, petrol will now sell for Rs332 per litre and HSD will cost Rs360 on Friday, Nov 13, according to a notification from the Oil and Gas Regulatory Authority (Ogra).

The government still imposes taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel. As part of an arrangement announced on Nov 2, oil refineries will contribute to the petroleum levy by bearing a cumulative impact of Rs15 billion over 30 days, which reduces the petrol price for consumers by Rs14.71. The Prime Minister’s Fuel Relief Scheme, introduced on Sept 17, provides subsidies to motorcycle owners, rickshaw pullers, and drivers of vehicles up to 800cc to alleviate the public's burden due to rising fuel prices caused by Middle East tensions.

Despite the price reductions, Brent and US West Texas Intermediate crude oil futures rose after geopolitical tensions and rising crude output offset the pressure. HSD's price has dropped from its April 3 peak of Rs520.35, which began rising from Rs281 per litre after the US-Iran war started on Feb 28. Meanwhile, the government has implemented austerity measures in response to the price increases, including closing markets by 9pm and cutting fuel allocations for official vehicles by 50pc for three months.

The petroleum minister said the cabinet and prime minister decided to give Ogra the responsibility of daily fuel pricing based on international market trends. Previously, the government had been announcing weekly fuel price revisions since early March and conservation measures amid possible oil supply disruptions due to the conflict.

The federal government also announced targeted relief measures in April to provide subsidized fuel. Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, affecting the middle and lower-middle classes. Diesel, mainly used in the heavy transport sector, power plants, and large generators, also impacts the entire public.

Petrol and HSD generate the most revenue, with monthly sales of 700,000 to 800,000 tonnes versus just 10,000 tonnes for kerosene.