Govt decreases petrol price by Rs0.35, increases diesel by Rs5.71 per litre

Pakistan's government announced adjustments to fuel prices, decreasing petrol by Rs0.35 to Rs315.80 per litre and increasing high-speed diesel (HSD) by Rs5.71 to Rs360.06 per litre. These changes, effective July 21, reflect the impact of volatile international market prices, particularly following renewed regional hostilities in the Persian Gulf.

Previously, the government had been revising fuel prices weekly since early March, implementing measures to conserve fuel amid potential supply disruptions from the Middle East conflict. The diesel price had previously peaked at Rs520.35 on April 3, having risen significantly after the US-Iran conflict began on February 28. Petrol prices also saw a peak of Rs458.41 on April 3, after starting its ascent from Rs266 in early March.

Petroleum Minister Ali Pervaiz Malik stated that fuel prices will now be determined on a daily basis to better manage fluctuations tied to international market trends. This decision, however, was met with rejection by the All Pakistan Dealers Association, which indicated plans for a protest.

The pricing of petrol and HSD significantly impacts various segments of the population. Petrol is primarily used in private vehicles, affecting middle and lower-middle-class households, while diesel is crucial for the heavy transport sector, power generation, and large generators, impacting the public at large.

Petrol and HSD are major revenue generators for the government, with monthly sales averaging between 700,000 to 800,000 tonnes. This contrasts sharply with the much lower monthly demand for kerosene, which stands at only about 10,000 tonnes.

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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.