Govt Cuts Petrol Price by Rs4.08, High-Speed Diesel by Rs2.45
The government on Monday reduced petrol and high-speed diesel (HSD) prices by Rs4.08 and Rs2.45 per litre, respectively, following a decline in global oil prices after US President Donald Trump called off a planned strike on Iran and announced talks with Tehran.
Following the latest revision, petrol will be available at Rs331.95 per litre, while the price of high-speed diesel (HSD) has been set at Rs389.93 per litre. The government continues to collect Rs110 per litre in taxes and duties on petrol and Rs96 per litre on diesel.
According to a notification issued by the Petroleum Division, the revised prices will take effect from Tuesday, August 4.
The latest reduction brings the diesel price further down from its peak of Rs520.35 per litre, recorded on April 3. HSD prices had risen from Rs281 per litre after the outbreak of the US-Iran conflict on February 28.
Petrol prices also reached a high of Rs458.41 per litre on April 3, after rising from Rs266 per litre in the first week of March.
Petroleum Minister Ali Pervaiz Malik had earlier announced that fuel prices would be reviewed and set on a daily basis in response to fluctuations in international oil markets following renewed tensions between Iran and the United States.
Since early March, the government had been revising fuel prices on a weekly basis while introducing fuel conservation measures amid concerns over potential disruptions to oil supplies due to the conflict in the Middle East. In April, the federal government also announced targeted relief measures to provide subsidised fuel.
Malik said the federal cabinet and prime minister had assigned the Oil and Gas Regulatory Authority (Ogra) the task of determining fuel prices daily in line with international market movements.
However, the All Pakistan Dealers Association opposed the daily pricing mechanism and indicated that it could consider launching a protest.
Petrol is primarily consumed by private vehicles, small cars, rickshaws and motorcycles, making changes in its price particularly significant for middle- and lower-middle-income households.
Diesel prices, meanwhile, have a broader impact on the economy as HSD is widely used by heavy transport vehicles, power plants and large generators.
Petrol and HSD remain the government’s major petroleum revenue sources, with monthly sales estimated at around 700,000 to 800,000 tonnes. In comparison, monthly kerosene demand stands at approximately 10,000 tonnes.
