Govt raises petrol price by Rs5.44, diesel by Rs31.05 per litre for three days

WEB DESK: The federal government on Friday increased the prices of petrol and High-Speed Diesel (HSD) by Rs5.44 and Rs31.05 per litre respectively with immediate effect.

The new rates will remain in place for the next three days until July 20 to pass on the impact of higher import premiums and global prices triggered by renewed US-Iran conflict.

Following the latest revision, the price of petrol stands at Rs316.15, while HSD is now priced at Rs354.35 per litre. According to a press release issued by the Petroleum Division, the new prices came into effect on July 18 (Saturday).

Historical price trends and daily pricing shift

The latest hike follows a volatile period for domestic fuel rates. The price of HSD has come down from a historic peak of Rs520.35 per litre recorded on April 3. Its price had initially started climbing from Rs281 per litre after hostilities broke out between the US and Iran on February 28. Similarly, the price of petrol had peaked at Rs458.41 on April 3, after beginning an upward trajectory from Rs266 per litre in the first week of March.

Earlier today, Petroleum Minister Ali Pervaiz Malik announced that the cabinet and the prime minister had decided to hand over the responsibility of fuel pricing to the Oil and Gas Regulatory Authority (Ogra) on a daily basis. He stated that fuel prices would now be fixed daily due to constant fluctuations in the international market following renewed hostilities between Iran and the US.

To ensure transparency, the minister added that Ogra would not only publish the international fuel rates used to determine prices on its website, but also detail the specific factors leading to the end consumer price seen at petrol pumps. The government had previously been announcing weekly revisions since early March, alongside fuel conservation measures and targeted relief subsidies introduced in April to mitigate potential supply disruptions from the Middle East conflict.

Tax breakdown and dealers’ response

The government currently collects approximately Rs105 per litre on both petroleum products. This includes customs duty, the petroleum levy, the climate support levy, and the inland freight equalisation margin. However, the decision to shift to a daily pricing mechanism has been rejected by the All Pakistan Dealers Association, which announced that it would consider a protest plan next week.

The price adjustments are expected to impact a wide cross-section of the public. Petrol is primarily consumed by private transport, small vehicles, rickshaws, and two-wheelers, directly affecting the middle and lower-middle classes. Meanwhile, changes in HSD rates have a broader inflationary impact on the public at large, as the fuel is heavily utilised in transport sectors, power plants, and large generators.

Petrol and HSD remain the primary revenue earners in the oil sector, with monthly sales hovering between 700,000 and 800,000 tonnes, compared to the minor monthly demand of 10,000 tonnes for kerosene.