Key Takeaways
- Petrol price increased by Rs4.61 per litre to Rs393.75.
- HSD price reduced by Rs1.96 per litre to Rs422.08.
- Government introduces austerity measures to address rising fuel costs.
The government has announced a revision in fuel prices, with petrol prices increasing by Rs4.61 per litre to Rs393.75, while high-speed diesel (HSD) prices have been reduced by Rs1.96 per litre to Rs422.08. The new prices will take effect from Tuesday, September 22.
The hike in petrol prices follows a peak of Rs458.41 on April 3, after the price began rising from Rs266 in the first week of March. HSD prices, which had peaked at Rs520.35 on April 3, have now come down from a high recorded on that date.
The government has reintroduced several austerity measures in response to the rising fuel prices, including a requirement for markets to close by 9pm and a 50% cut in fuel allocations for official vehicles for three months.
Prime Minister Shehbaz Sharif announced a relief scheme on September 13 for users of motorcycles, autos, and vehicles up to 800cc. Owners of two- and three-wheelers will receive Rs100 per litre relief on a monthly quota of 20 litres, while owners of vehicles up to 800cc will receive the same relief on a monthly quota of 30 litres.
In April, the government had announced targeted relief measures to provide subsidised fuel, with the Petroleum Minister Ali Pervaiz Malik stating 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.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, affecting the middle and lower-middle classes. HSD, on the other hand, is mainly used in the heavy transport sector, power plants, and large generators, impacting the public at large.
The government's decision to fix fuel prices on a daily basis is a response to fluctuations in international market prices, particularly following renewed hostilities between Iran and the US. Prior to this, the government had been announcing weekly revisions to fuel prices since early March, amid concerns of possible oil supply disruptions.
The petroleum minister stated that petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.
