By Our Correspondent
ISLAMABAD –The federal government on Wednesday announced a reduction in the price of petrol by Rs0.75 per litre, while increasing the price of high-speed diesel (HSD) by Rs2.24 per litre for the next fortnight.
According to an official notification issued by the Finance Division, the revised petroleum prices came into effect immediately and will remain applicable until the next scheduled review.
Under the new pricing structure, the price of petrol has been reduced by Rs0.75 per litre, providing modest relief to motorists, motorcycle riders and owners of small passenger vehicles across the country.
In contrast, the price of high-speed diesel (HSD) has been increased by Rs2.24 per litre, a move that is expected to have a greater impact on the transport, agriculture and industrial sectors, where diesel is widely used.
The government reviews petroleum prices every two weeks after assessing fluctuations in international crude oil prices, changes in the exchange rate and recommendations submitted by the Oil and Gas Regulatory Authority (OGRA).
Officials said the latest revision reflects developments in the global energy market as well as domestic pricing adjustments under the existing fuel pricing mechanism.
Petrol is primarily consumed by private vehicles, motorcycles, taxis and ride-hailing services, making it the most commonly used fuel in Pakistan. Any reduction in its price is generally welcomed by consumers, although the latest cut is relatively modest.
High-speed diesel, on the other hand, is the principal fuel for heavy transport vehicles, buses, trucks, agricultural machinery, construction equipment and freight services. An increase in diesel prices often raises transportation and logistics costs, which can eventually affect the prices of essential commodities.
Economists note that changes in diesel prices typically have a broader inflationary impact than adjustments in petrol prices because diesel is extensively used in the movement of goods and agricultural operations.
The latest revision comes at a time when international oil markets continue to experience volatility due to geopolitical tensions in the Middle East and uncertainty over global energy supplies. Fluctuations in crude oil prices have prompted governments around the world to periodically revise domestic fuel prices.
Pakistan imports a significant portion of its petroleum requirements, making domestic fuel prices sensitive to changes in international oil benchmarks and currency movements. Authorities have repeatedly stated that petroleum prices are determined under a transparent formula based on import costs, taxes, petroleum levy, dealer margins and other applicable charges.
The government has maintained that periodic adjustments are necessary to reflect market realities while ensuring the availability of petroleum products across the country.
Business groups and transport operators are expected to closely monitor the impact of the diesel price increase, as higher fuel costs could place additional pressure on operating expenses. Consumer representatives, meanwhile, have called for broader measures to provide relief from inflation and rising living costs.
The revised fuel prices will remain in force until the next fortnightly review, when the government is expected to reassess domestic petroleum prices in light of international market trends and fresh recommendations from OGRA.
The latest adjustment follows the government’s regular review mechanism aimed at balancing consumer interests with fiscal requirements and developments in the global oil market.
