Government raises petrol price by Rs0.88, diesel by Rs0.53

The federal government has increased petrol and high-speed diesel prices for the next pricing period, raising petrol by Rs0.88 per litre and diesel by Rs0.53.

Under the revised rates, petrol will be available at Rs382.02 per litre, while high-speed diesel will cost Rs389.80 per litre from Wednesday, October 21, according to a notification issued by the Petroleum Division.

The government continues to impose taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel, adding to the cost borne by consumers.

Despite the latest increases, diesel prices remain significantly below their peak of Rs520.35 per litre, recorded on April 3. Petrol also reached a record high of Rs458.41 per litre on the same date.

Fuel prices began climbing following the outbreak of the US-Iran war on February 28. Petrol, which stood at around Rs266 per litre in early March, witnessed a sharp increase during the subsequent weeks. Diesel prices also rose from Rs281 per litre before reaching their April peak.

Meanwhile, the government has reinstated austerity measures to manage the impact of rising fuel costs amid continuing tensions in the Middle East. Under the measures, markets are required to close by 9pm, while fuel allocations for official vehicles have been reduced by 50 per cent for three months.

Prime Minister Shehbaz Sharif had earlier announced a relief scheme on September 13 for motorcyclists, auto-rickshaw users and owners of vehicles with engine capacities of up to 800cc. The initiative was aimed at easing the financial pressure on lower-income consumers facing higher global oil prices.

In another policy change, Petroleum Minister Ali Pervaiz Malik announced on July 17 that fuel prices would be determined daily in response to fluctuations in international oil markets following renewed hostilities between Iran and the United States.