Govt raises petrol price by Rs5.58, diesel by Rs4.18

The federal government has increased petrol and high-speed diesel (HSD) prices, putting further pressure on consumers and the transport sector.

According to a Petroleum Division notification, petrol has become Rs5.58 per litre more expensive, while the price of HSD has risen by Rs4.18 per litre. The revised prices will take effect from Wednesday, September 9.

With the latest increase, petrol will now be sold at Rs364.35 per litre, while HSD will cost Rs385.95 per litre.

The government is currently collecting Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

Fuel prices have experienced major fluctuations in recent months due to volatility in international oil markets and the conflict in the Middle East. HSD had reached a record Rs520.35 per litre on April 3, after rising from around Rs281 per litre following the outbreak of the US-Iran conflict on February 28.

Petrol also touched a peak of Rs458.41 per litre on April 3, after starting its upward movement from around Rs266 per litre in early March.

In July, Petroleum Minister Ali Pervaiz Malik announced a shift towards daily fuel price adjustments. The move was aimed at allowing domestic prices to respond more quickly to changes in international oil prices.

The Oil and Gas Regulatory Authority (Ogra) was assigned the responsibility of determining fuel prices on a daily basis in line with international market trends.

The latest increase is likely to affect household budgets, particularly among private vehicle owners, motorcyclists, rickshaw drivers and other small-vehicle users. Higher petrol prices can also increase transportation costs and indirectly push up the prices of everyday goods.

The increase in diesel prices is equally significant because HSD is widely used by trucks, buses and other heavy vehicles. It is also used in power plants and large generators, meaning higher diesel costs can have a wider impact on businesses and consumers.