Govt reduces petrol price by Rs3.19, high-speed diesel by Rs1.50

The Pakistani government has announced a reduction in the prices of petrol and high-speed diesel (HSD), effective August 7. Petrol will now retail at Rs329.82 per litre, down by Rs3.19, while HSD will cost Rs382.36 per litre, a decrease of Rs1.50. Despite these reductions, the government continues to levy substantial taxes and duties on both fuels, amounting to Rs110 per litre on petrol and Rs96 per litre on HSD.

The decision to revise prices comes amidst significant fluctuations in international markets, particularly due to renewed hostilities between the US and Iran. The petroleum minister, Ali Pervaiz Malik, announced that fuel prices would henceforth be fixed on a daily basis, a shift from the previous weekly revisions that began in early March. This move aims to align domestic prices with global market trends and follows earlier government measures, including targeted relief and subsidised fuel in April, to mitigate the impact of potential oil supply disruptions.

The Oil and Gas Regulatory Authority (Ogra) has been tasked with setting daily fuel prices based on international market trends, a decision that has met with resistance. The All Pakistan Dealers Association has rejected the daily pricing mechanism and indicated plans for a protest. The association's opposition highlights the potential economic and logistical challenges associated with such frequent price adjustments.

The impact of these price changes is significant for various sectors of the Pakistani economy. Petrol, primarily used in private transport, directly affects the middle and lower-middle classes. Diesel, essential for the heavy transport sector, power plants, and large generators, has a broader impact on public life and commerce. Both fuels 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.