Govt hikes petrol price by Rs0.27, high-speed diesel by Rs1.64

The Pakistani government has raised fuel prices, increasing the cost of petrol by Rs0.27 per liter and high-speed diesel (HSD) by Rs1.64 per liter, effective August 21. Following this adjustment, petrol will be sold at Rs337.78 per liter, and HSD at Rs364.70 per liter.

Despite the price hike, the government continues to impose substantial taxes and duties on fuels. Consumers face Rs114 per liter in taxes on petrol and Rs100 per liter on diesel. The price of HSD has seen a significant decrease from its peak of Rs520.35 on April 3, having risen from Rs281 per liter after the outbreak of the US-Iran war on February 28. Similarly, petrol prices peaked at Rs458.41 on April 3, after starting its climb from Rs266 in early March.

Petroleum Minister Ali Pervaiz Malik announced that fuel prices will now be fixed daily due to fluctuations in international market prices, particularly following renewed hostilities between Iran and the United States. The government had been implementing weekly revisions since early March, alongside fuel conservation measures amid potential oil supply disruptions from the ongoing Middle East conflict. In April, the government also introduced targeted relief measures for subsidized fuel.

The Oil and Gas Regulatory Authority (Ogra) has been tasked by the cabinet and prime minister to determine daily fuel prices based on international market trends. These price changes significantly impact the public, as petrol is primarily used for private transport and affects the middle and lower-middle classes, while diesel is crucial for the heavy transport sector, power plants, and large generators. Petrol and HSD are major revenue sources for the government, with substantial monthly sales volumes.

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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.