The federal government has revised the prices of petroleum products on Wednesday, reducing the price of High-Speed Diesel (HSD) by Rs32.63 per litre while increasing petrol by Rs2.97 per litre.
The revision brings the new retail price of petrol to Rs337.51 per litre, while HSD now costs Rs363.06 per litre. The updated rates take effect on August 20. The federal government maintains taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.
The price reduction follows negotiations between the federal government and domestic oil refineries. Federal Minister for Petroleum Ali Pervaiz Malik held meetings with refinery representatives following instructions from Prime Minister (PM) Shehbaz Sharif.
“Prime Minister Shehbaz Sharif also made a request to the refineries. He instructed me, and after that we had two or three virtual meetings with the refineries,” Malik stated during a media briefing.
“I am happy to announce that the refineries have accepted the government’s demand while acknowledging the difficulties, and decided on a significant decrease in the price of diesel of more than Rs30 or Rs32.”
Malik added that the Oil and Gas Regulatory Authority (Ogra) will calculate the exact breakdown. He also noted the impact of regional instability on domestic fuel costs. “The government is trying its best to address these issues using its limited resources, and PM Shehbaz Sharif is issuing orders to address them without wasting a single moment,” Malik said.
Earlier, the federal government transferred the responsibility of setting fuel prices to Ogra, which calculates rates on a daily basis to reflect international market movements caused by the conflict between the United States (US) and Iran.
The government previously implemented weekly price revisions alongside fuel conservation measures and targeted subsidies introduced in April.
The price of HSD previously reached Rs520.35 on April 3, rising from Rs281 following the onset of the US-Iran conflict on February 28. Petrol prices reached Rs458.41 on April 3, rising from Rs266 in early March.
Petrol consumption in Pakistan impacts middle and lower-middle-class transport, including two-wheelers, rickshaws, and private vehicles. High-speed diesel powers heavy transport vehicles, power generation plants, and industrial generators. Combined monthly sales for petrol and HSD range between 700,000 and 800,000 tonnes, compared to 10,000 tonnes for kerosene.
