Pakistan Cuts Petrol Price by Rs1.70, Raises Diesel by Rs1.39 Amid Daily Pricing Shift

Pakistan's government has adjusted fuel prices, lowering the cost of petrol by Rs1.70 per liter to Rs325.92, while increasing high-speed diesel (HSD) by Rs1.39 per liter to Rs382.25. Despite these changes, substantial taxes remain on both fuels, with Rs114 per liter levied on petrol and Rs100 per liter on HSD.

These revisions come as the government shifts to a daily pricing mechanism for fuel, a move announced by Petroleum Minister Ali Pervaiz Malik. This change is attributed to fluctuations in international market prices, particularly following renewed hostilities between Iran and the US. Previously, weekly revisions were standard since early March, alongside fuel conservation measures amid potential oil supply disruptions in the Middle East.

The government also implemented targeted relief measures for subsidized fuel in April. The decision to grant the Oil and Gas Regulatory Authority (Ogra) the responsibility for daily price setting, based on global trends, was made by the cabinet and the prime minister.

However, the daily pricing decision has met resistance. The All Pakistan Dealers Association has rejected the move and is considering protest plans. The price of HSD had previously peaked at Rs520.35 on April 3, having risen from Rs281 after the US-Iran war began on February 28. Petrol prices peaked at Rs458.41 on April 3, starting from Rs266 in early March.

Changes in petrol prices significantly affect the middle and lower-middle classes, as it is primarily used in private transport. Similarly, diesel price adjustments impact the public broadly, given its use in heavy transport, power plants, and large generators. Both petrol and HSD are major revenue generators for the government.

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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.