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Tag: Petrol

  • Petrol price cut by Re0.66, diesel raised by Re0.52 per litre till Oct 12

    Petrol price cut by Re0.66, diesel raised by Re0.52 per litre till Oct 12

    The federal government on Friday announced a fresh revision of fuel prices, reducing the price of petrol by Re0.66 per litre while raising the price of high-speed diesel (HSD) by Re0.52 per litre, according to Dawn. The new rates take effect on October 10 and will remain in force until October 12.

    Following the revision, petrol will retail at Rs398.30 per litre, while HSD will cost Rs396.24 per litre, the report said, citing a notification issued by the Petroleum Division. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel, Dawn reported.

    The latest adjustment comes under the daily fuel pricing mechanism. The Express Tribune reported that the revision was issued for October 10 to October 12, and noted that the government had raised petrol prices by Rs2.31 and HSD by 78 paisas per litre just a day earlier, for October 9.

    Daily pricing amid volatile markets

    The government moved to a daily price-fixing regime in July. According to Dawn, Petroleum Minister Ali Pervaiz Malik had announced on July 17 that fuel prices would be fixed daily because of fluctuations in international markets following renewed hostilities between Iran and the United States.

    Under the mechanism approved by the federal cabinet, the Oil and Gas Regulatory Authority (Ogra) decides fuel prices on a daily basis based on international market trends, the cabinet and the prime minister having given the regulator that responsibility. Geo News reported that prices notified on Fridays remain unchanged over the weekend, and that daily prices are computed from a seven-day average of international market prices.

    Relief scheme and austerity measures

    The government has paired the pricing changes with targeted relief. Dawn reported that on September 13, Prime Minister Shehbaz Sharif announced a relief scheme for users of motorcycles, rickshaws and vehicles of up to 800cc to cushion the impact of rising global oil prices, while back in April the government had already rolled out targeted measures to provide subsidised fuel.

    At the same time, austerity and fuel conservation measures remain in place. Markets are required to close by 9pm and fuel allocations for official vehicles have been cut by 50 per cent for three months, according to Dawn.

    Fuel prices surged earlier this year after the US-Iran war broke out on February 28. HSD had climbed from Rs281 per litre to a peak of Rs520.35 on April 3, while petrol rose from Rs266 in the first week of March to a peak of Rs458.41 on April 3. Prices have eased since then but remain far above pre-war levels.

    Dawn noted that petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, so its price movements directly affect the middle and lower-middle classes. Diesel price changes, meanwhile, ripple across the wider economy because diesel powers the heavy transport sector, power plants and large generators. Petrol and HSD are the major revenue earners for fuel retailers, with combined monthly sales of about 700,000 to 800,000 tonnes, compared with just 10,000 tonnes for kerosene.

  • Petrol Up Rs2.31, Diesel Rs0.78 a Litre as Government Moves to Daily Fuel Price Reviews

    Petrol Up Rs2.31, Diesel Rs0.78 a Litre as Government Moves to Daily Fuel Price Reviews

    ISLAMABAD: The federal government on Wednesday increased the price of petrol by Rs2.31 per litre and high-speed diesel (HSD) by Re0.78 per litre, following changes in international oil prices. The revised prices will remain effective for October 9, according to a notification issued by the Petroleum Division.

    After the latest revision, petrol will be available at Rs398.96 per litre, while the price of HSD has been fixed at Rs395.72 per litre, officials said.

    The change comes as the government shifts toward a daily fuel price review mechanism. The Oil and Gas Regulatory Authority (Ogra) has begun publishing daily petroleum prices on its website to improve transparency and allow changes in international oil prices to be passed on to consumers more quickly.

    Petroleum Minister Ali Pervaiz Malik said the daily prices are based on a seven-day average of international market prices, in line with international practice.

    The price revision also brought inflation into focus. On the same day, the National Price Monitoring Committee (NPMC), chaired by Planning and Development Minister Ahsan Iqbal, reviewed wholesale-retail price gaps and the prices of essential commodities, directing the relevant authorities to monitor transport fares.

    An official announcement said the minister expressed concern over rising prices of essential commodities, particularly wheat flour, and directed provincial and district administrations to strengthen monitoring of supplies, market arrivals, hoarding, profiteering and unjustified price increases.

    Mr Iqbal directed the authorities concerned to compare current transport fares with fares prevailing after the previous fuel price increase to determine whether the increase in fuel prices had resulted in any disproportionate rise in fares.

    He also directed the Ministry of Food Security to examine why DAP fertiliser prices remained high in Pakistan despite a decline in international prices, stressing that the benefit of lower international prices should be reflected in the domestic market.

    The minister directed that the inspection and quality assessment report regarding ghee, edible oil and milk products be submitted within one week. He said that if the industry had proposed third-party validation, its cost should be borne by the industry and not the government. He asked provincial governments to closely monitor wholesale and retail prices and take enforcement action where unjustified gaps existed, particularly in major markets including Lahore and Karachi, while also calling for close monitoring of supply chains and distribution costs to prevent disproportionate pass-through of fuel price increases to essential food prices.