Govt Raises Petrol Price by Rs5.58, Diesel by Rs4.18

ISLAMABAD: The federal government has increased the prices of petrol and high-speed diesel (HSD), raising petrol by Rs5.58 per litre and HSD by Rs4.18 per litre.

Under the revised rates, petrol will now cost Rs364.35 per litre, up from Rs358.77, while high-speed diesel will be available at Rs385.95 per litre, compared to the previous Rs381.77. The new prices will come into effect from September 9.

Despite the latest increase, the government continues to impose Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel, according to a notification issued by the Petroleum Division.

The government shifted to a daily fuel pricing mechanism on July 17, empowering the Oil and Gas Regulatory Authority (OGRA) to adjust prices based on international oil market trends. The move was introduced following heightened volatility in global crude markets amid geopolitical tensions in the Middle East.

Fuel prices have remained volatile throughout the year. Diesel, which reached a record Rs520.35 per litre in April, has declined significantly from its peak but remains well above pre-conflict levels. Petrol also witnessed a sharp rise earlier this year, touching Rs458.41 per litre before easing in recent months.

The latest revision is expected to have a widespread economic impact. Petrol is primarily used by private motorists, motorcycles, rickshaws and small vehicles, making price changes particularly significant for middle- and lower-income households.

Similarly, an increase in diesel prices is likely to raise transportation and logistics costs, as HSD is widely consumed by heavy commercial vehicles, agricultural machinery, power plants and industrial generators.

Petrol and high-speed diesel remain the country's highest-selling petroleum products, generating the bulk of petroleum-related revenue due to their substantial monthly consumption.