The price of high-speed diesel (HSD) has been increased by Rs1.91 per litre to Rs393.66, while petrol prices remain unchanged at Rs377.71 per litre.
The government continues to impose taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel. According to a notification issued by the Petroleum Division, the revised fuel prices will remain effective from October 24 to October 26.
Diesel prices have declined from a record high of Rs520.35 per litre, reached on April 3. The upward trend began after the outbreak of the US-Iran war on February 28, when diesel was priced at Rs281 per litre.
Petrol prices also peaked at Rs458.41 per litre on April 3, having risen from Rs266 per litre during the first week of March.
Amid rising fuel costs and the ongoing conflict in the Middle East, the government has reinstated several austerity measures to conserve fuel. Under the measures, markets must close by 9pm, while fuel allocations for official vehicles have been reduced by 50 per cent for three months.
On September 13, Prime Minister Shehbaz Sharif announced a relief scheme for motorcycle users, auto-rickshaw operators and owners of vehicles with engine capacities of up to 800cc to ease the impact of rising international oil prices.
Earlier, on July 17, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would be determined daily in response to fluctuations in international markets following renewed hostilities between Iran and the United States.
Before the introduction of daily pricing, the government had been revising fuel prices weekly since early March. These adjustments were accompanied by fuel conservation initiatives amid concerns over potential disruptions to oil supplies caused by the Middle East conflict. In April, the federal government also announced targeted subsidies to provide relief to consumers.
The petroleum minister said the cabinet and prime minister had assigned the Oil and Gas Regulatory Authority (OGRA) the responsibility of determining fuel prices daily in line with international market trends.
Petrol is primarily used in private vehicles, small cars, rickshaws and motorcycles. Changes in its price therefore have a direct impact on middle- and lower-middle-income households.
Diesel prices also significantly affect the wider economy because high-speed diesel is extensively used in heavy transport, power plants and large generators.
Petrol and high-speed diesel remain the government’s major petroleum revenue sources, with monthly sales ranging from approximately 700,000 to 800,000 tonnes. In comparison, monthly demand for kerosene stands at around 10,000 tonnes.
