The federal government on Monday notified the latest fuel prices, applicable for Aug. 18, raising the price of petrol by Rs. 5.77/liter and high-speed diesel by Rs. 6.47/liter.
Following the revision under the daily price fixation mechanism, consumers will pay Rs. 331.2/litre for petrol and Rs. 390.45/liter for diesel. Similarly, the price of kerosene oil has been raised by Rs. 6.88/liter to Rs. 296.63/liter.
These prices include Rs. 114/liter in taxes and duties on petrol and Rs. 100/liter on diesel.
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.