The government on Tuesday raised fuel prices for the second time this week, increasing the price of petrol by Rs. 3.34/liter and that of high-speed diesel by Rs. 5.27/liter.
Applicable for Aug. 19, the latest hikes under the daily price fixation mechanism bring the consumer price of petrol to Rs. 334.54/liter, up from Rs. 331.2/liter a day earlier. Similarly, diesel would now cost Rs. 395.69/liter, up from Rs. 390.45/liter. These prices include Rs. 114/liter in taxes and duties on petrol and Rs. 100/liter on diesel.
The government has also increased the price of kerosene oil by Rs. 4.22/liter, bringing it from Rs. 296.63/liter to Rs. 300.85/liter.
According to Petroleum Minister Ali Pervaiz Malik, fuel prices are fixed on a daily basis due to fluctuations in international market prices amidst renewed hostilities between Iran and the U.S. in a bid to boost transparency and pass on the full impact to consumers immediately.
The daily price fixation mechanism was implemented last month, replacing a weekly mechanism implemented in early March. Prior to the outbreak of the Middle East conflict, the government used to set prices fortnightly.
Both the All Pakistan Dealers Association and the Transport Goods Association have rejected the daily pricing mechanism, with the latter suspending a strike over assurances the price fixation mechanism would be revised.
Primarily used in private transport, changes to the price of petrol tend to impact the middle and lower-middle classes, who use it for their daily commute. Changes in diesel prices, meanwhile, are considered inflationary, as increased hike the cost of heavy transport and can drive up the prices of essential commodities.