The federal government of Pakistan has raised fuel prices across the country, increasing petrol by Rs3.34 per litre and High-Speed Diesel (HSD) by Rs5.27 per litre.
With the latest revision, petrol retails at Rs334.54 per litre, while HSD costs Rs395.69 per litre. The official notification from the Petroleum Division confirmed that the prices take effect on August 19.
The government retains taxation levels on petroleum products, keeping taxes and duties at Rs114 per litre on petrol and Rs100 per litre on diesel.
Fuel markets went through extreme fluctuations in recent months. HSD previously hit a record high of Rs520.35 per litre on April 3, rising from Rs281 per litre after hostilities between the United States (US) and Iran began on February 28. Petrol followed a similar upward trajectory, climbing from Rs266 per litre in early March to a peak of Rs458.41 per litre on April 3.
To manage market volatility, the federal government restructured its pricing mechanism. Petroleum Minister Ali Pervaiz Malik explained the policy shift, stating that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.
The decision hands direct pricing authority back to the regulatory body. Petroleum Minister Ali Pervaiz Malik stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (OGRA) the responsibility of deciding fuel prices on a daily basis based on international market trends.
Prior to daily pricing, the government utilized weekly revisions starting in early March, paired with fuel conservation directives to prepare for potential Middle East supply disruptions. The federal government also implemented targeted relief measures in April to distribute subsidised fuel.
Price adjustments directly affect consumer demographics and transport networks nationwide. Petrol powers private transport, small vehicles, rickshaws, and two-wheelers, impacting middle and lower-middle-class households. HSD drives the broader economy, powering heavy commercial transport, power generation plants, and industrial generators.
Petrol and HSD drive the bulk of national petroleum consumption. Monthly sales for petrol and HSD range between 700,000 and 800,000 tonnes, compared to a monthly demand of 10,000 tonnes for kerosene.
