Govt increases petrol by Rs1.63, diesel by Rs1.55

The government on Tuesday increased the price of petrol by Rs1.63 and high-speed diesel (HSD) by Rs1.55 per litre, passing on the impact of fluctuating global oil prices following renewed hostilities in the Persian Gulf.

Following the changes, the price of petrol stands at Rs335.81 per litre, while HSD is now priced at Rs388.38 per litre. The government is charging a total of Rs110 per litre in taxes and duties on petrol and Rs96 on diesel. The Petroleum Division’s notification said the new prices would be applicable for July 29 (Wednesday).

The diesel price has come down from a peak of Rs520.35 recorded on April 3, after beginning its upward trajectory from Rs281 per litre when the US-Iran war broke out on February 28. Similarly, petrol had peaked at Rs458.41 on April 3 after rising from Rs266 in the first week of March.

Earlier, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices. The government had been announcing weekly revisions since early March, alongside conservation measures amid possible oil supply disruptions due to the ongoing Middle East conflict. In April, the federal government also announced targeted relief measures to provide subsidised fuel.

The petroleum minister stated that the cabinet and prime minister had decided to give the Oil and Gas Regulatory Authority (OGRA) the responsibility of deciding fuel prices daily based on international market trends. The daily pricing decision was rejected by the All Pakistan Dealers Association, which said it would consider a protest plan this week.

Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes. Similarly, diesel price changes impact the public at large, as it is primarily used in the heavy transport sector, power plants and large generators. Petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.