Pakistan Revises Petrol and Diesel Prices From October 6
The federal government has revised petroleum prices, increasing the petrol rate by Rs. 0.88 per litre while reducing the price of high-speed diesel (HSD) by Rs. 1.88 per litre.
Under the latest notification issued by the Petroleum Division, the new prices will take effect from Tuesday, October 6. Petrol will now be sold at Rs. 393.64 per litre, while high-speed diesel will cost Rs. 397.76 per litre.
The government continues to collect Rs. 114 per litre in taxes and duties on petrol. The corresponding tax and duty burden on diesel stands at Rs. 100 per litre.
The latest adjustment comes amid continued fluctuations in international oil markets. Diesel had reached a high of Rs. 520.35 per litre on April 3 after rising from around Rs. 281 per litre following the outbreak of the US-Iran conflict on February 28.
Petrol also reached its highest recent level of Rs. 458.41 per litre on April 3. Its price had started climbing from approximately Rs. 266 per litre during the first week of March.
The government has also introduced fuel conservation measures in response to higher international oil prices and the ongoing situation in the Middle East. These measures include requiring markets to close by 9pm and reducing fuel allocations for official vehicles by 50 percent for three months.
Prime Minister Shehbaz Sharif had earlier announced a relief programme for motorcycle users, rickshaws and owners of vehicles with engines up to 800cc. The initiative was aimed at reducing the impact of rising global fuel costs on lower-income and middle-income citizens.
Pakistan also changed its approach to petroleum price revisions earlier this year. Petroleum Minister Ali Pervaiz Malik announced in July that fuel prices would be determined on a daily basis in response to movements in international oil markets.
Previously, the government had been making regular fuel price adjustments on a weekly basis.
Petrol prices have a direct impact on household budgets because the fuel is widely used by private vehicles, motorcycles, rickshaws and other small modes of transport. Diesel prices are also important for the wider economy as HSD is extensively used by heavy transport, power plants and large generators.
Petrol and HSD remain among the government’s major petroleum revenue sources, with combined monthly sales reaching roughly 700,000 to 800,000 tonnes. In comparison, monthly kerosene demand is estimated at around 10,000 tonnes.
