Govt Increases Petrol Price by Rs3.40 Per Litre, Diesel by Rs6.72
The federal government has announced another increase in fuel prices, raising the cost of petrol by Rs3.40 per litre and high-speed diesel (HSD) by Rs6.72 per litre
According to a notification issued by the Petroleum Division on Wednesday, the revised prices will come into effect from September 10. Following the latest adjustment, petrol will be sold at Rs367.75 per litre, while high-speed diesel will retail at Rs392.67 per litre.
Despite the latest revision, the government continues to impose Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
Fuel prices have remained volatile in recent months due to fluctuations in the international oil market. High-speed diesel, which reached a record Rs520.35 per litre on April 3, has gradually declined from that peak. Earlier this year, its price surged from Rs281 per litre following the outbreak of tensions between the United States and Iran.
Similarly, petrol prices had climbed from Rs266 per litre in early March to an all-time high of Rs458.41 per litre on April 3 before easing in subsequent months.
In July, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would be revised daily, replacing the earlier weekly review mechanism. The decision was taken in response to increased volatility in global oil markets caused by renewed geopolitical tensions in the Middle East.
Before the shift to daily pricing, the government had introduced weekly fuel price revisions alongside measures aimed at conserving petroleum products amid concerns over potential supply disruptions. It had also launched targeted relief initiatives, including subsidised fuel schemes for selected consumers.
The petroleum minister stated that the federal cabinet and the prime minister had authorised the Oil and Gas Regulatory Authority (OGRA) to determine daily fuel prices based on international market movements.
Petrol remains the primary fuel for private vehicles, motorcycles, rickshaws and other small transport, meaning any increase directly affects middle- and lower-income households. Meanwhile, changes in diesel prices have a broader economic impact, as the fuel is widely used by heavy transport, agriculture, power generation and industrial sectors, contributing to higher transportation and production costs.
Petrol and high-speed diesel continue to be the government's largest petroleum revenue sources, with combined monthly sales averaging 700,000 to 800,000 tonnes, significantly exceeding the demand for kerosene, which stands at around 10,000 tonnes per month.
