Govt reduces petrol price by Rs3.39, high-speed diesel by Rs4.07

The Pakistani government announced a reduction in fuel prices on Tuesday, lowering the cost of petrol by Rs3.39 per liter and high-speed diesel (HSD) by Rs4.07 per liter. These new prices will take effect on Wednesday, August 5.

Following the revision, petrol will retail at Rs328.56 per liter, and HSD will cost Rs385.86 per liter. Despite the decrease, the government continues to levy substantial taxes and duties: Rs110 per liter on petrol and Rs96 per liter on diesel.

The price of diesel had previously peaked at Rs520.35 on April 3, having started its rise from Rs281 per liter after the US-Iran conflict began on February 28. Similarly, petrol prices reached a high of Rs458.41 on April 3, after beginning an upward trend from Rs266 in early March.

Petroleum Minister Ali Pervaiz Malik stated that fuel prices will now be fixed daily due to fluctuations in international markets, particularly following renewed hostilities between Iran and the US. The government had been announcing weekly revisions since early March, implementing conservation measures amid potential oil supply disruptions from the Middle East. The Oil and Gas Regulatory Authority (Ogra) has been tasked with deciding daily fuel prices based on international market trends, a decision met with rejection by the All Pakistan Dealers Association, which is considering protest plans. Petrol and HSD are major revenue earners, with monthly sales between 700,000 and 800,000 tonnes.