Pakistan hikes petrol, diesel prices; daily pricing to be implemented

Pakistan's government has raised the prices of petrol and high-speed diesel (HSD), with petrol increasing by Rs1.09 and HSD by Rs2.42 per litre. Following this adjustment, petrol is now priced at Rs336.15 per litre, and HSD at Rs393.04 per litre. The government continues to impose significant taxes and duties on both fuels, amounting to Rs110 per litre on petrol and Rs96 per litre on diesel.

In response to volatile international market prices, particularly amid renewed hostilities between the US and Iran, the Petroleum Division announced that fuel prices will now be set on a daily basis. This marks a shift from the weekly revisions that had been in place since early March. The government had previously implemented measures to conserve fuel and offered targeted relief through subsidized fuel in April.

The decision for daily pricing, which grants the Oil and Gas Regulatory Authority (Ogra) the responsibility to adjust prices based on global trends, has been met with opposition. The All Pakistan Dealers Association has rejected the daily pricing mechanism and indicated plans for a protest. Changes in petrol prices directly impact the middle and lower-middle classes, who primarily use it for private transport. Similarly, diesel price fluctuations affect the public through the heavy transport sector and power generation.

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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.