The federal government has raised the price of High-Speed Diesel (HSD) by Rs1.91 per litre on Friday, taking the new rate to Rs393.66, while keeping petrol prices unchanged at Rs377.71 per litre for October 24 to 26.
The Petroleum Division issued a notification confirming the revised rates, which took effect on Saturday. The government continues to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
Diesel prices have fallen from their peak of Rs520.35 per litre, recorded on April 3. The rate began climbing from Rs281 per litre after the United States (US)-Iran war broke out on February 28.
Petrol prices also rose during the same period, reaching Rs458.41 per litre on April 3 after starting their upward trajectory from Rs266 in the first week of March.
The government has reintroduced austerity measures to conserve fuel amid rising prices and the ongoing conflict in the Middle East. The measures require markets to close by 9pm and cut fuel allocations for official vehicles by 50 percent for three months.
On September 13, Prime Minister (PM) Shehbaz Sharif announced a relief scheme for motorcycle users, auto-rickshaw operators and owners of vehicles with engine capacities of up to 800cc. He said the scheme aimed to “alleviate the burden” of rising global oil prices.
Petrol mainly powers private transport, small vehicles, auto-rickshaws and two-wheelers. Price changes therefore affect middle- and lower-middle-income groups.
Diesel prices also affect the public because the fuel powers heavy transport, power plants and large generators.
Petrol and HSD generate most of the revenue in the petroleum sector, with monthly sales ranging from 700,000 to 800,000 tonnes. In comparison, monthly demand for kerosene stands at around 10,000 tonnes.
