Govt increases petrol price by Rs0.39, high-speed diesel by Rs2.40

Pakistan's government has raised the prices of petrol and high-speed diesel (HSD), effective August 25. Petrol will now cost Rs341.98 per liter, an increase of Rs0.39, while HSD will retail at Rs370.69 per liter, up by Rs2.40.

The government continues to impose significant taxes on fuels, with Rs114 per liter on petrol and Rs100 per liter on diesel. This move follows an announcement by Petroleum Minister Ali Pervaiz Malik that fuel prices will be fixed daily. This change is attributed to fluctuations in international market prices, especially after renewed hostilities between Iran and the US.

Fuel prices have seen considerable volatility. HSD reached a peak of Rs520.35 on April 3, having risen from Rs281 per liter after the US-Iran war began on February 28. Petrol peaked at Rs458.41 on April 3, after starting its climb from Rs266 in early March.

The government had been revising fuel prices weekly since early March. It also implemented measures to conserve fuel amid potential oil supply disruptions from the Middle East conflict. In April, targeted relief measures for subsidized fuel were announced. The petroleum minister stated that the cabinet and prime minister decided to grant the Oil and Gas Regulatory Authority (Ogra) the authority to set daily fuel prices based on global market trends.

Changes in petrol prices directly impact the middle and lower-middle classes, as it's primarily used for private transport. Diesel price adjustments affect the public broadly, given its use in heavy transport, power plants, and large generators. Both petrol and HSD are significant revenue generators for the government.

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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.