The government, late on Friday, reduced the price of petrol by Re. 0.58/liter and that of high-speed diesel by Re. 0.17/liter.
Applicable for Aug. 29-31, the revisions under the daily price fixation mechanism bring the retail price of petrol to Rs. 342.02/liter and that of diesel to Rs. 371.44/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 in July, 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. The Jamaat-e-Islami, meanwhile, has been protesting against high fuel prices for over a week, with the party demanding the abolition of the petroleum levy and the fixation of petrol at Rs. 225/liter. It has vowed to continue its demonstrations until the government takes practical steps to address its concerns.
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.