Pakistan cuts diesel price by Rs32.63, raises petrol by Rs2.97

Pakistan's government announced a significant reduction in high-speed diesel prices, cutting them by Rs32.63 per liter, while simultaneously increasing petrol prices by Rs2.97 per liter. The revised rates, effective August 20, set petrol at Rs337.51 and diesel at Rs363.06 per liter. Despite the price adjustments, the government continues to levy substantial taxes, amounting to Rs114 per liter on petrol and Rs100 per liter on diesel.

This price revision follows "successful" talks with petroleum refineries. The price of diesel had previously peaked at Rs520.35 per liter on April 3, having risen sharply from Rs281 per liter after the US-Iran conflict began on February 28. Petrol had reached a high of Rs458.41 per liter on April 3, up from Rs266 in early March.

Petroleum Minister Ali Pervaiz Malik stated that fuel prices will now be fixed daily to reflect international market fluctuations, particularly due to renewed hostilities between Iran and the US. The government had been adjusting prices weekly since early March, implementing fuel conservation measures amid potential oil supply disruptions in the Middle East. Previously, targeted relief measures for subsidized fuel were also announced in April.

The Oil and Gas Regulatory Authority (Ogra) will now be responsible for setting daily fuel prices based on international trends. Changes in petrol prices directly affect the middle and lower-middle classes, who primarily use it for private transport. Similarly, diesel price adjustments impact the public through the heavy transport sector, power plants, and large 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.