Pakistan government slashes petrol and diesel prices

Pakistan's government has slashed petrol prices by Rs4.08 and high-speed diesel (HSD) by Rs2.45 per liter, passing on the impact of falling international oil prices. The reduction follows a day after U.S. President Donald Trump called off a planned attack on Iran, which had previously driven up oil costs.

Following the revision, petrol will now retail at Rs331.95 per liter, and HSD will cost Rs389.93 per liter. Despite the price cut, the government continues to levy substantial taxes, including Rs110 per liter on petrol and Rs96 per liter on diesel. The new prices are effective from August 4.

Petroleum Minister Ali Pervaiz Malik announced that fuel prices would henceforth be fixed on a daily basis to account for fluctuations in international market prices, especially after renewed hostilities between Iran and the U.S. The government had been implementing weekly revisions since early March and had introduced measures for fuel conservation amid potential oil supply disruptions in the Middle East.

The decision for daily pricing, however, was met with rejection by the All Pakistan Dealers Association, which indicated plans for a protest. Petrol and HSD are crucial commodities, impacting private transport, heavy transport, power plants, and large generators, thus affecting a broad segment of the population, particularly the middle and lower-middle classes.

“

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.