Govt hikes petrol price by Rs3.81, high-speed diesel by Rs3.59

The Pakistani government has raised the prices of petrol and high-speed diesel (HSD), effective Friday. Petrol will now retail at Rs341.59 per liter, an increase of Rs3.81, while HSD will cost Rs368.29 per liter, up by Rs3.59.

Despite these price hikes, the government continues to levy substantial taxes and duties on fuel. Consumers face Rs114 per liter in taxes on petrol and Rs100 per liter on diesel. These new prices are applicable from August 22 to August 24.

This adjustment follows significant price volatility. HSD had previously peaked at Rs520.35 on April 3, and its price began rising from Rs281 per liter after the US-Iran conflict erupted on February 28. Similarly, petrol reached a high of Rs458.41 on April 3, having started its upward trend from Rs266 in early March.

Petroleum Minister Ali Pervaiz Malik announced that fuel prices will now be determined on a daily basis. This shift to daily pricing is a response to fluctuations in international market prices, exacerbated by renewed hostilities between Iran and the US. Previously, the government had been announcing weekly revisions since early March, alongside measures to conserve fuel amid potential oil supply disruptions from the Middle East.

The article notes the impact of these price changes on various sectors. Petrol is primarily used in private transport, affecting middle and lower-middle-class households. Diesel prices influence the heavy transport sector, power plants, and large generators. Petrol and HSD are significant revenue sources for the government, with monthly sales ranging from 700,000 to 800,000 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.