Government raises petrol price by Rs0.77 and cuts high-speed diesel by Rs1.03

Pakistan has raised petrol prices slightly while cutting the price of high-speed diesel, continuing a series of fuel-price revisions shaped by international market movements.

Petrol will sell at Rs342.79 per litre from September 1, up Rs0.77. High-speed diesel will cost Rs370.41, a reduction of Rs1.03. The government will continue to collect Rs114 per litre in taxes and duties on petrol and Rs100 on diesel.

The latest prices remain below the peaks recorded on April 3. High-speed diesel reached Rs520.35 per litre after rising from Rs281 following the outbreak of the US-Iran war on February 28. Petrol climbed from Rs266 in the first week of March to a peak of Rs458.41.

Petroleum Minister Ali Pervaiz Malik previously said the government would shift to daily price-setting because renewed hostilities between Iran and the United States had caused international market fluctuations. The cabinet and prime minister assigned the Oil and Gas Regulatory Authority responsibility for setting prices according to global trends.

Petrol price changes directly affect private transport, small vehicles, rickshaws and motorcycles, while diesel costs influence heavy transport, power plants and large generators. Petrol and high-speed diesel also generate most of the sector’s revenue, with monthly sales of about 700,000 to 800,000 tonnes, compared with roughly 10,000 tonnes of monthly kerosene demand.

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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.