Petrol Price Rises by Rs4.61, Diesel Falls by Rs1.96 Per Litre

The government has increased the petrol price by Rs4.61 per litre. However, it has reduced the price of high-speed diesel (HSD) by Rs1.96 per litre.

Following the revision, petrol will now cost Rs393.75 per litre. Meanwhile, HSD will be available at Rs422.08 per litre.

According to a Petroleum Division notification, the revised prices will take effect from Tuesday, September 22.

The government continues to impose Rs114 per litre in taxes and duties on petrol. The corresponding levy on diesel stands at Rs100 per litre.

Fuel Prices Remain Sensitive to Global Oil Markets

The latest revision comes amid continued volatility in international oil markets.

HSD has fallen significantly from its peak of Rs520.35 per litre recorded on April 3. Its price had risen from Rs281 per litre after the US-Iran conflict began on February 28.

Similarly, petrol had reached a peak of Rs458.41 per litre on April 3. Its price had started climbing from Rs266 per litre during the first week of March.

The government has also revived several austerity measures in response to higher fuel costs. These measures include closing markets by 9pm.

In addition, fuel allocations for official vehicles have been cut by 50 per cent for three months.

Relief Scheme for Smaller Vehicles

The government has also announced targeted relief for motorcycle and small-vehicle users.

On September 13, Prime Minister Shehbaz Sharif announced a fuel relief scheme. The initiative aims to reduce the impact of higher global oil prices on lower-income motorists.

Under the scheme, owners of motorcycles and three-wheelers will receive relief of Rs100 per litre. The benefit will apply to a monthly quota of 20 litres.

Owners of vehicles with engines up to 800cc will receive the same relief. Their monthly quota will be limited to 30 litres.

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Daily Fuel Price Reviews

Pakistan shifted to a daily fuel-pricing mechanism earlier this year.

Petroleum Minister Ali Pervaiz Malik announced the change on July 17. The decision followed renewed volatility in international markets amid tensions involving Iran and the United States.

Previously, the government revised fuel prices on a weekly basis. The system had been introduced in March as global oil prices increased.

The federal government also introduced targeted relief measures in April. The measures aimed to provide subsidised fuel to selected consumers.

Under the new system, the Oil and Gas Regulatory Authority (Ogra) determines fuel prices daily. The decisions are based on international market trends.

Impact on Consumers and Transport

Petrol remains a major fuel for private transport. It is also widely used by motorcycles, rickshaws and small vehicles.

Therefore, petrol price changes directly affect millions of consumers. The impact is particularly significant for middle- and lower-middle-income households.

Diesel prices also have a broad economic impact. HSD is widely used by heavy transport operators, power plants and large generators.

Consequently, changes in diesel prices can influence transportation and operating costs across several sectors.

Petrol and HSD are also major sources of government revenue. Their monthly sales generally range between 700,000 and 800,000 tonnes.

By comparison, monthly demand for kerosene is around 10,000 tonnes.