The federal government has increased the price of petrol by Rs1.82 per litre while reducing the price of High-Speed Diesel (HSD) by Re0.91 per litre, with the new rates taking effect from Thursday.
Petrol will now cost Rs396.65 per litre, up from Rs394.83, while HSD will be available at Rs394.94 per litre. The government continues to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel, according to a Petroleum Division notification.
The revision comes as international oil prices rise amid concerns over fuel supplies from the Middle East. Brent crude futures rose $2.28, or 2.28 percent, to $102.28 a barrel, while United States (US) West Texas Intermediate (WTI) crude futures increased $1.66, or 1.88 percent, to $89.94.
Oil prices have risen as attacks on shipping in the Gulf and the Strait of Hormuz have increased concerns about supplies from the key Middle East producing region.
The latest domestic revision comes after fuel prices recorded sharp increases earlier this year. HSD had reached Rs520.35 per litre on April 3 after rising from Rs281 following the outbreak of the US-Iran war on February 28. Petrol also reached Rs458.41 per litre on April 3 after starting its increase from Rs266 in the first week of March.
The government has also brought back austerity measures to conserve fuel amid the ongoing Middle East conflict. Under the measures, markets must close by 9pm, while fuel allocations for official vehicles have been reduced by 50 percent for three months.
On September 13, Prime Minister (PM) Shehbaz Sharif announced a relief scheme for users of motorcycles, rickshaws, autos and vehicles up to 800cc in response to rising global oil prices.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, while HSD is widely used in heavy transport, power plants and large generators. Petrol and HSD also remain the government’s main fuel revenue sources, with monthly sales of around 700,000 to 800,000 tonnes, compared with about 10,000 tonnes of monthly kerosene demand.
