rki.news | Pakistan
ISLAMABAD, Sept. 3: The federal government has increased the prices of petrol and high-speed diesel (HSD) by Rs2.84 and Rs2.28 per litre, respectively, effective September 4 (Friday).
According to a notification issued by the Petroleum Division on Thursday, the new petrol price has been fixed at Rs349 per litre, while HSD will now cost Rs374.31 per litre.
The government continues to impose Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
The latest increase comes amid continuing fluctuations in international oil markets linked to geopolitical tensions and developments in the Middle East.
HSD has declined considerably from its record price of Rs520.35 per litre reached on April 3. Its price had risen from Rs281 per litre after the US-Iran conflict began on February 28.
Petrol had also reached a peak of Rs458.41 per litre on April 3, after rising from Rs266 during the first week of March.
In July, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would be reviewed and fixed daily because of volatility in international oil prices following renewed hostilities in the Persian Gulf.
Previously, the government had been revising petroleum prices weekly since early March while introducing fuel conservation measures amid concerns over possible disruptions to oil supplies.
Under the new mechanism, the Oil and Gas Regulatory Authority (OGRA) has been assigned responsibility for determining fuel prices on a daily basis according to international market trends, following a decision by the cabinet and prime minister.
Petrol is widely used by private vehicles, motorcycles, rickshaws and other small transport, making price changes particularly significant for middle and lower-middle-income households.
Diesel prices also have a broad economic impact because HSD is extensively used by heavy transport, power plants and large generators.
Petrol and HSD remain major sources of government revenue, with combined monthly sales estimated at around 700,000 to 800,000 tonnes, compared with approximately 10,000 tonnes of monthly kerosene demand.
