The government has increased the price of petrol by Rs6.88 per litre and High-Speed Diesel (HSD) by Rs5.62 per litre, with the new rates taking effect from Thursday.
Petrol will now be sold at Rs391.22 per litre, while HSD will cost Rs421.45 per litre, according to a Petroleum Division notification issued on Wednesday.
The Oil and Gas Regulatory Authority (OGRA) attributed the increase primarily to higher petrol and diesel prices in the international market. The regulator said that the latest rates were calculated using international market prices, premiums and other relevant factors.
Oil prices moved lower in early trading on Thursday. Brent crude futures fell $1.24, or 1.2 percent, to $104.59 a barrel, while United States (US) West Texas Intermediate (WTI) futures declined $1.14, or 1.1 percent, to $101.29 a barrel.
The government is currently charging Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
The latest revision comes after fuel prices had fallen from the levels recorded earlier this year. HSD had reached a peak of Rs520.35 per litre on April 3 after its price began rising from Rs281 per litre following the outbreak of the US-Iran war on February 28.
Petrol had also reached its highest price of Rs458.41 per litre on April 3, after rising from Rs266 per litre in the first week of March.
The government has also announced measures to provide relief to consumers as global oil prices continue to affect domestic fuel costs. On September 13, Prime Minister Shehbaz Sharif announced a relief scheme for users of motorcycles, autos and vehicles with engine capacities of up to 800cc.
Under the scheme, owners of two- and three-wheelers will receive Rs100 per litre in relief on a monthly quota of 20 litres. Owners of vehicles up to 800cc will receive the same Rs100 per litre relief on a monthly quota of 30 litres, according to the Prime Minister’s Office.
The government had also changed the frequency of fuel price revisions in response to fluctuations in international markets. Petroleum Minister Ali Pervaiz Malik announced on July 17 that fuel prices would be fixed on a daily basis following renewed hostilities between Iran and the US.
Before the shift to daily pricing, the government had been announcing weekly fuel price revisions since early March.
It had also introduced fuel conservation measures over concerns about possible oil supply disruptions linked to the conflict in the Middle East and announced targeted relief measures in April to provide subsidised fuel.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, while HSD is used largely in heavy transport, power plants and large generators.
Petrol and HSD are also major revenue sources, with monthly sales of around 700,000 to 800,000 tonnes, compared with monthly kerosene demand of about 10,000 tonnes.
