Government cuts petrol price by Rs3.13, raises HSD by Rs3.74

Petrol will become slightly cheaper in Pakistan, but high-speed diesel will cost more under a short-term price revision announced by the government on Friday.

The petrol price fell by Rs3.13 per litre to Rs345.87, while the price of high-speed diesel rose by Rs3.74 to Rs378.05. The new rates will remain in force from Sept. 5 through Sept. 7, according to a Petroleum Division notification.

The government continues to collect Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel. High-speed diesel has fallen from a peak of Rs520.35 recorded on April 3, after rising from Rs281 per litre following the outbreak of the US-Iran war on Feb. 28. Petrol reached Rs458.41 on April 3 after beginning to rise from Rs266 in the first week of March.

Pakistan shifted to daily fuel-price decisions after Petroleum Minister Ali Pervaiz Malik announced the policy on July 17. The change followed fluctuations in international markets linked to renewed hostilities between Iran and the United States. Before that, the government had revised prices weekly from early March and introduced fuel-conservation measures over concerns about oil supply disruptions.

Petrol is used mainly by private vehicles, rickshaws and two-wheelers, making its price important for middle- and lower-middle-income households. Diesel prices affect heavy transport, power plants and large generators. Petrol and diesel also generate most petroleum-sector revenue, with monthly sales of about 700,000 to 800,000 tonnes, compared with about 10,000 tonnes of monthly kerosene demand.