Petrol, diesel prices rise by over Rs5 per litre

The government has increased the prices of petrol and high-speed diesel by more than Rs5 per litre, with the new rates taking effect from today.

According to a notification issued by the Petroleum Division, the price of petrol has been increased by Rs5.02 per litre to Rs375.82.

The price of high-speed diesel (HSD) has risen by Rs5.28 per litre to Rs403.32.

The new prices will remain in effect until September 14, according to the notification.

The latest increase comes as global crude oil prices have fallen. Brent crude was down more than 3% on Saturday at $104 a barrel, while US crude fell 3% to $98 a barrel. Murban crude also declined 2% to $120 a barrel.

Despite the latest increase, diesel remains below its peak price of Rs520.35 per litre recorded on April 3. Its price had risen from Rs281 per litre after the US-Iran war broke out on February 28.

Petrol had reached a peak of Rs458.41 per litre on April 3 after beginning its upward trend from Rs266 in the first week of March.

On July 17, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would be fixed on a daily basis because of fluctuations in international market prices following renewed hostilities between Iran and the US.

Before the move to daily pricing, the government had been announcing weekly revisions to fuel prices since early March. It had also introduced fuel conservation measures amid concerns over possible oil supply disruptions linked to the conflict in the Middle East.

The federal government announced targeted relief measures in April to provide subsidised fuel.

Malik said the cabinet and prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) responsibility for setting fuel prices daily based on international market trends.

Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, making changes in its price particularly relevant to middle- and lower-middle-income households.

Diesel is widely used in heavy transport, power plants and large generators, meaning changes in its price also affect transport and other sectors.