The government on Tuesday notified the latest consumer fuel prices, applicable for Aug. 5 (Wednesday), reducing the rates of petrol and high-speed diesel by Rs. 3.39/liter and Rs. 4.07/liter, respectively.
After the latest daily price review, the new rate of petrol stands at Rs. 328.56/liter, down from Rs. 331.95/liter. Diesel, meanwhile, now costs Rs. 385.86/liter, down from Rs. 389.93/liter. The price of petrol includes Rs. 110/liter in levies and taxes, while there are similar taxes on diesel of Rs. 96/liter.
According to Petroleum Minister Ali Pervaiz Malik, the daily price fixation mechanism aims to pass on the full impact of international price fluctuations following renewed hostilities between Iran and the U.S. It is based on a seven-day weekly average of international market prices to align with international standards.
Prior to introducing the daily mechanism last month, the government had shifted from a fortnightly review to a weekly review in the aftermath of the start of the conflict.
Primarily used in private transport, changes in 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 mainly used in the heavy transport sector and can affect the prices of essential commodities.
Nationwide strike
Also on Tuesday, the All Pakistan Goods Transporters Alliance (APGTA) announced a “peaceful” nationwide strike on Aug. 8 (Saturday) over high prices of diesel, taxes and other government measures. They have demanded a reduction in taxes on diesel and the restoration of fuel prices to their July 1, 2024, level.
The group is also demanding a reduction in the withholding tax on cargo transporters from the current 7% to 2%, as well as the withdrawal of a provision introduced in the Finance Act, 2026 that allows the confiscation of any vehicle found to be transporting non-duty-paid goods. Previously, transporting of such products resulted in fines and the release of the vehicles.
Further, the group has sought uniform implementation of axle-load regulations nationwide, demanding overloading checks at factories, warehouses and loading points rather than through roadside enforcement, which they allege has become a source of revenue collection.
According to the APGTA, it has decided to stage the strike over the lack of any meaningful progress in their discussions with the government. It said the strike would remain peaceful and transporters would park their vehicles instead of blocking highways.