Govt increases petrol price by Rs1.63, HSD price by Rs1.55

Pakistan's government has raised the prices of petrol and high-speed diesel (HSD), citing the impact of fluctuating global oil prices amid renewed hostilities in the Persian Gulf. The price of petrol increased by Rs1.63 per liter, bringing the new price to Rs335.81. High-speed diesel saw a rise of Rs1.55 per liter, with the new price set at Rs388.38.

The government is collecting substantial taxes and duties on these fuels, totaling Rs110 per liter on petrol and Rs96 on diesel. These new prices became effective on July 29. The price of diesel had previously peaked at Rs520.35 in April, while petrol reached its highest at Rs458.41 in the same month, both beginning their upward trend earlier in the year.

In response to market volatility, the Petroleum Minister announced that fuel prices would now be fixed on a daily basis, a shift from the previous weekly revisions. This decision aims to manage the impact of international market trends. The government had previously implemented measures for fuel conservation and offered targeted relief on subsidized fuel.

The daily pricing mechanism was decided by the cabinet and the prime minister, granting the Oil and Gas Regulatory Authority (Ogra) the responsibility for daily price adjustments. However, the All Pakistan Dealers Association rejected this move, announcing plans for a potential protest this week. The price changes significantly affect the middle and lower-middle classes, who primarily use petrol, and the broader public, as diesel powers the heavy transport sector and generators.

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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.