Pakistan cuts petrol, diesel prices; shifts to daily pricing model

Pakistan's government has announced a reduction in fuel prices, lowering the cost of petrol by Rs2.20 and high-speed diesel by Rs1.50 per liter. Following this adjustment, petrol will now be sold at Rs327.62 per liter, and high-speed diesel at Rs380.86 per liter. Despite the price decrease, the government continues to levy substantial taxes, amounting to Rs114 per liter on petrol and Rs100 per liter on diesel.

These new prices are set to be effective from August 8 to August 10. The announcement comes as the Petroleum Division shifts to a daily pricing mechanism for fuels, a decision driven by volatility in international market prices, particularly in light of renewed hostilities between Iran and the United States. This daily pricing replaces the previous weekly revisions that had been in place since early March.

The All Pakistan Dealers Association has expressed strong opposition to the daily pricing system, warning of potential protests. The price of diesel had previously surged from Rs281 per liter to a peak of Rs520.35 on April 3, while petrol reached its highest point at Rs458.41 on April 3, having started its climb from Rs266 in early March. The government had also implemented targeted relief measures and subsidized fuel in April amid concerns over potential oil supply disruptions.