Govt raises petrol price by Rs5.02 per litre, HSD by Rs5.28 amid rising global oil prices

The government has increased the prices of petrol and high-speed diesel (HSD), with the new rates taking effect from Saturday, September 12.  According to a notification issued by the Petroleum Division, the price of petrol has been increased by Rs5.02 per liter to Rs375.82, while HSD has risen by Rs5.28 to Rs403.32 per liter. The revised prices will remain applicable until September 14.The government continues to impose Rs114 per liter in taxes and duties on petrol, while the levy on diesel stands at Rs100 per liter. The latest increase comes amid continued fluctuations in international oil prices linked to tensions in the Middle East .HSD had reached a record Rs520.35 per liter on April 3 after rising from Rs281 per liter following the outbreak of the US-Iran war on February 28. Petrol also peaked at Rs458.41 per liter on April 3, after beginning its upward trend from Rs266 in the first week of March. In July, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would be determined on a daily basis in response to volatility in international markets following renewed hostilities between Iran and the United States. Before the policy change, the government had been revising fuel prices weekly since early March while also introducing fuel conservation measures amid concerns over possible disruptions to oil supplies caused by the conflict in the Middle East. The federal government had also announced targeted relief measures in April aimed at providing subsidized fuel Under the revised mechanism, the Oil and Gas Regulatory Authority (Ogra) was given responsibility for determining fuel prices on a daily basis according to international market trends, following a decision by the federal cabinet and prime minister. Petrol is primarily used in private vehicles, small cars, rickshaws and motorcycles, making changes in its price particularly significant for middle- and lower-middle-income households .Diesel prices also have a broad impact on the public because HSD is widely used by the heavy transport sector, power plants and large generators. Petrol and HSD remain the government’s major petroleum revenue sources, with combined monthly sales of around 700,000 to 800,000 tones, compared with monthly kerosene demand of approximately 10,000 tones.