By Our Correspondent
ISLAMABAD: The federal government has sharply increased petroleum product prices, raising petrol by Rs12.90 per litre to Rs358.77, while high-speed diesel (HSD) has been increased by Rs3.72 per litre to Rs381.77, according to a notification issued on Monday.
The revised prices will remain applicable until September 8, under the government’s new mechanism of making more frequent adjustments to domestic petroleum prices.
The latest increase represents another substantial jump in petrol prices at a time when households and businesses are already facing elevated transportation and energy costs.
Petrol jumps Rs12.90 in latest revision
Following the Rs12.90 increase, the price of petrol has climbed from Rs345.87 to Rs358.77 per litre, based on the figures in the latest notification.
High-speed diesel has meanwhile risen from Rs378.05 to Rs381.77 per litre after an increase of Rs3.72.
The petrol increase is particularly significant because of its direct impact on millions of motorists, motorcyclists and commuters. Petrol is widely used in motorcycles, cars and other light vehicles, meaning changes in its price can quickly affect household transport budgets.
High-speed diesel has a broader impact on commercial transportation, agriculture and the movement of goods because it is extensively used by trucks, buses, tractors and other heavy vehicles.
Fuel prices rising under daily adjustment mechanism
The latest revision follows a series of petroleum price changes in recent weeks.
On September 1, the government increased petrol by Rs1.08 per litre to Rs343.87 and HSD by Rs0.51 to Rs370.92. Those prices were announced for a one-day period under the revised pricing mechanism.
The government has shifted to more frequent petroleum price determination rather than relying solely on the previous fortnightly pricing arrangement. An earlier government notification in August also specified that revised petrol and diesel rates would remain applicable for one day.
The repeated revisions mean domestic consumers are becoming more immediately exposed to changes affecting the cost structure of petroleum products.
Petrol at record level
At Rs358.77 per litre, petrol has reached a new nominal record based on the recent official price series.
The latest Rs12.90 increase is also considerably larger than several of the adjustments announced during recent weeks.
For a motorist purchasing 40 litres of petrol, the latest increase alone adds Rs516 to the cost of filling that quantity. At the new rate, 40 litres would cost about Rs14,350.80.
A 50-litre purchase would cost approximately Rs17,938.50, with the latest increase adding Rs645 compared with the immediately preceding rate.
Diesel above Rs380 per litre
High-speed diesel has again moved above the psychologically important Rs380 level, reaching Rs381.77 per litre.
Although its latest increase of Rs3.72 is considerably smaller than the petrol hike, diesel prices can have a wider indirect effect across the economy because of their importance to freight and agriculture.
An increase in diesel costs can raise expenses for transporting food, industrial raw materials and finished products between cities and markets. Farmers may also face higher costs where diesel-powered tractors, tube wells and other machinery are used.
These costs can eventually be reflected in prices paid by consumers, although the extent of the pass-through depends on several other factors.
Fresh inflation concerns
The latest petroleum price increase comes at a sensitive time for consumers because fuel prices have an important influence on transportation and production costs.
Businesses that rely heavily on road transport may face higher operating expenses, while public and private transport operators could also come under pressure from rising fuel bills.
For households, the Rs12.90 increase in petrol represents an immediate additional expense, particularly for people who commute daily using motorcycles and cars.
Fuel prices can also have second-round effects because virtually every major commodity must be transported from producers, factories or ports to wholesale and retail markets.
Government issues notification
The government has formally notified the revised rates, with the latest prices applicable up to September 8, after which another revision may be announced under the prevailing pricing mechanism.
The government has recently been determining petroleum prices more frequently. In August, for example, an official revision increased dealers’ margins from Rs8.64 to Rs9.98 per litre, while petrol and diesel retail prices were also adjusted.
With petrol now at Rs358.77 and high-speed diesel at Rs381.77 per litre, consumers will be closely watching the next government notification to see whether international petroleum market movements and other pricing components bring further increases or provide some relief.
