Key Takeaways
- Petrol price reduced by Rs3.19 per litre to Rs329.82.
- High-speed diesel (HSD) price cut by Rs1.50 per litre to Rs382.36.
- Prices effective from August 7, following international market trends.
The government has reduced the prices of petrol and high-speed diesel (HSD), marking a shift in fuel pricing strategy amid fluctuating global oil markets. Petrol will now retail at Rs329.82 per litre after being lowered by Rs3.19, while HSD will cost Rs382.36 per litre following a reduction of Rs1.50.
These adjustments come as part of the government's ongoing practice of adjusting fuel prices based on international oil market trends and other cost factors. The new prices are set to be effective from August 7, according to a notification issued by the Ministry of Energy (Petroleum Division).
The reduction in HSD price is particularly significant, having peaked at Rs520.35 on April 3 after the US-Iran conflict erupted on February 28. The price had previously risen from Rs281 per litre, reflecting the impact of regional tensions on global oil prices.
Petrol, which was priced at a peak of Rs458.41 on April 3, has seen its price adjusted multiple times since March, with the latest increase by Rs4.45 per litre in an earlier review. The government had announced that fuel prices would now be fixed daily based on international market trends following renewed hostilities between Iran and the US.
The new pricing mechanism is expected to provide more frequent adjustments, allowing for quicker responses to changes in global oil markets. However, the All Pakistan Dealers Association has expressed concerns, stating it will consider a protest plan against the daily pricing decision.
Petrol remains a major revenue earner, with monthly sales of about 700,000 to 800,000 tonnes compared to just 10,000 tonnes for kerosene. Changes in its price significantly impact the middle and lower-middle classes, as it is primarily used in private transport, small vehicles, rickshaws, and two-wheelers.
High-speed diesel, on the other hand, affects a broader public due to its use in heavy transport sectors, power plants, and large generators. The reduction in HSD price is expected to provide some relief to these industries, which have been grappling with higher operational costs since April 3.
The government continues to levy Rs110 per litre in taxes and duties on petrol and Rs96 per litre on high-speed diesel, indicating that the reductions are primarily in the ex-depot prices rather than the total cost to consumers.
