The Oil and Gas Regulatory Authority (OGRA) late on Wednesday updated the prices of petroleum products for Aug. 6 (today), raising the consumer price of petrol by Rs. 4.45/liter while reducing that of diesel by Rs. 2/liter.
Amidst renewed hostilities between Iran and the United States—currently on pause—the government shifted to a daily price fixation mechanism in a bid to pass on the immediate impact of international price fluctuations to consumers. The daily price, per Petroleum Minister Ali Pervaiz Malik, is based on a seven-day weekly average of international market prices to align with international standards.
Following the latest revision, the price of petrol has increased from Rs. 328.56/liter to Rs. 333.01/liter while that of high-speed diesel has decreased from Rs. 385.86/liter to Rs. 383.86/liter. The latest price includes roughly Rs. 110/liter in taxes and duties on petrol, and Rs. 98/liter on diesel, including Rs. 72.26/liter in petroleum development levy.
Primarily used in private transport, changes to the price of petrol tend to affect the middle and lower-middle classes, who use it for their daily commute. Changes to the price of diesel, meanwhile, can prove inflationary as it is used in the heavy transport sector and can impact the prices of essential commodities.