Govt decreases petrol price by Rs0.12, diesel down by Rs0.66 for next three days

Pakistan's government has announced a slight reduction in fuel prices for the upcoming days. Effective August 1 to August 3, the price of petrol will decrease by Rs0.12 per liter, and high-speed diesel (HSD) will be reduced by Rs0.66 per liter. Following this adjustment, petrol will be sold at Rs336.03 per liter, and HSD at Rs392.38 per liter.

However, the relief offered by these minor price cuts is significantly offset by the continued imposition of substantial taxes and duties. The government levies Rs110 per liter on petrol and Rs96 per liter on diesel, contributing heavily to the retail price. This tax burden remains a significant factor for consumers.

In a starkly contrasting development, the Oil and Gas Regulatory Authority (Ogra) has notified a record 32% increase in the price of regasified liquefied natural gas (RLNG) for August. This surge, bringing the price to $25.83 per mmBtu for SNGPL and $25.09 per mmBtu for SSGCL, translates to a retail price of Rs7,204 per mmBtu. The increase is attributed to the reliance on imported cargoes from the spot market, as no shipments could be secured from Qatar due to the ongoing US-Iran war.

This marks the largest single jump in RLNG rates in its decade-long history, adding to a previous 15% increase last month. The escalating RLNG prices have a substantial impact on fuel costs for power generation, leading to higher electricity prices. The government had previously announced daily fuel price revisions due to international market fluctuations, a move rejected by the All Pakistan Dealers Association, which is considering protest plans.

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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.