Pakistan cuts petrol, raises diesel in fuel price revision
Representational image.
Pakistan announced a revision in fuel costs on Wednesday, slightly reducing the price of petrol while increasing the rate for high-speed diesel (HSD).
According to the Petroleum Division’s notification, the price of petrol dropped by Re0.94, bringing the new retail price to Rs324.98 per liter, whereas HSD rose by Re0.54 to reach Rs382.79 per liter.
These adjustments take effect on Thursday even as the government continues to collect Rs114 in taxes and duties per liter of petrol and Rs100 on diesel.
Petroleum Minister Ali Pervaiz Malik said the cabinet and the prime minister have authorized the Oil and Gas Regulatory Authority (OGRA) to set fuel prices on a daily basis moving forward. This shift follows international market volatility sparked by renewed hostilities between Iran and the US.
While the government had utilized weekly revisions since early March to manage supply risks from the Middle East conflict, Minister Malik stated that daily pricing will now reflect global trends more accurately.
However, the All Pakistan Dealers Association rejected this daily pricing mechanism and is considering a protest plan.
Fuel prices saw a massive surge after the US-Iran war began on 28 February, with HSD and petrol hitting record peaks of Rs520.35 and Rs458.41, respectively, on 3 April.
These fluctuations heavily impact the public, as petrol is essential for the middle and lower-middle classes using small vehicles, while diesel remains the backbone of heavy transport, power plants, and large generators.
Monthly demand for these major fuels ranges between 7,00,000 and 8,00,000 tons, far outpacing the 10,000 tons of kerosene consumed monthly.
