Government cuts petrol price by Rs0.58, diesel by Rs0.17

The Pakistani government announced a slight reduction in fuel prices, with petrol decreasing by Rs0.58 per litre and high-speed diesel (HSD) by Rs0.17 per litre. Following this adjustment, petrol will be sold at Rs342.02 per litre, and HSD at Rs371.44 per litre. Despite the minor decrease, the government continues to impose substantial taxes and duties, amounting to Rs114 per litre on petrol and Rs100 per litre on diesel.

These new prices are set to be in effect from August 29 to August 31, according to a notification from the Petroleum Division. The price of HSD had previously reached a peak of Rs520.35 on April 3. Its cost began its upward trend from Rs281 per litre after the US-Iran war commenced on February 28. Similarly, petrol prices peaked at Rs458.41 on April 3, having started at Rs266 in early March.

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fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.

Petroleum Minister Ali Pervaiz Malik stated that fuel prices will now be adjusted daily to reflect fluctuations in international market rates, a shift from the previous weekly revisions. This change comes in response to renewed hostilities between Iran and the US, which have created volatility in global oil markets. The government had been implementing weekly revisions since early March and had also introduced measures to conserve fuel amidst potential supply disruptions from the Middle East.

The minister also mentioned that the cabinet and prime minister have authorized the Oil and Gas Regulatory Authority (Ogra) to determine daily fuel prices based on international market trends. Petrol is a primary fuel for private transport, affecting middle and lower-middle-class households, while diesel impacts the broader public through its use in heavy transport, power plants, and large generators. Both petrol and HSD are significant revenue sources for the government, with substantial monthly sales volumes.

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the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends.