Govt increases petrol price by Rs0.39, high-speed diesel by Rs2.40

The government on Monday increased the price of petrol by Rs0.39 per litre and high-speed diesel (HSD) by Rs2.40 per litre.

As a result, petrol will now be sold at Rs341.98 per litre, while the price of HSD has risen to Rs370.69 per litre. The government continues to impose Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

According to a Petroleum Division notification, the revised prices will take effect from August 25.

HSD prices have fallen considerably from their record high of Rs520.35 per litre on April 3. The increase had begun after the US-Iran conflict erupted on February 28, when diesel was priced at around Rs281 per litre. Petrol, meanwhile, reached a peak of Rs458.41 per litre on April 3 after climbing from Rs266 in early March.

Petroleum Minister Ali Pervaiz Malik had previously announced that fuel prices would be reviewed daily instead of weekly because of volatility in international oil markets following renewed tensions between Iran and the United States.

Since early March, the government had been revising fuel prices every week while also introducing fuel conservation measures over concerns about potential disruptions to oil supplies caused by the Middle East conflict. In April, the federal government also introduced targeted relief measures to provide subsidised fuel to certain consumers.

The petroleum minister said the cabinet and prime minister had assigned the Oil and Gas Regulatory Authority (Ogra) responsibility for determining fuel prices on a daily basis, taking international market movements into account.

Petrol prices have a direct impact on private motorists, small vehicles, rickshaws and motorcycles, making them particularly significant for middle- and lower-middle-income households.

Diesel prices have an even broader effect because HSD is widely used by heavy transport operators, power plants and large generators.

Petrol and HSD are also the government's primary fuel revenue sources, with monthly sales estimated at 700,000 to 800,000 tonnes. By comparison, monthly kerosene demand stands at only around 10,000 tonnes.