Government raises petrol price by Rs1.08 and high-speed diesel by Rs0.51

Pakistan has raised the price of petrol by Rs1.08 per litre and high-speed diesel by Rs0.51, taking the new rates to Rs343.87 and Rs370.92 respectively. The revised prices will apply from Sept. 2, 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. The latest increase follows sharp swings in fuel prices this year. High-speed diesel fell from a peak of Rs520.35 on April 3, while petrol reached Rs458.41 on the same day.

Diesel had climbed from Rs281 per litre after the US-Iran war broke out on Feb. 28. Petrol began rising from Rs266 in the first week of March. On July 17, Petroleum Minister Ali Pervaiz Malik said prices would be set daily because international markets had become more volatile after renewed hostilities between Iran and the United States.

Before that change, the government revised prices weekly from early March and introduced fuel-conservation measures amid possible supply disruptions linked to the conflict in the Middle East. In April, the federal government also announced targeted subsidies for fuel.

The cabinet and prime minister assigned the Oil and Gas Regulatory Authority responsibility for determining prices each day, based on international market trends. Petrol is widely used by private motorists, small vehicles, rickshaws and motorcycles, making price changes particularly relevant to middle- and lower-middle-income households. Diesel powers heavy transport, plants and large generators. Petrol and high-speed diesel are also the main revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared with roughly 10,000 tonnes of monthly kerosene demand.