The government once again hiked fuel prices on Tuesday night, raising the rate of petrol by Rs. 1.63/liter and that of high-speed diesel by Rs. 1.55/liter, ostensibly passing on the impact of international price fluctuations directly to consumers.
Petroleum Minister Ali Pervaiz Malik has said the daily price fixing mechanism, implemented nearly two weeks back, derives from a seven-day weekly average to align with international standards. According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the latest price of petrol and diesel—applicable for July 29—stands at Rs. 335.81/liter and Rs. 388.38/liter, respectively.
The government has also raised the price of kerosene oil by Rs. 1.96/liter to Rs. 303.10/liter.
Prior to the onset of the Iran-U.S. conflict on Feb. 28, the government used to set fuel prices every two weeks. This was revised to weekly price fixation amidst supply disruptions caused by the conflict before being revised to daily pricing following renewed hostilities earlier this month.
The government is also charging Rs. 110/liter in taxes and duties on petrol and Rs. 96/liter on diesel.
Primarily used in private transport, shifts in the price of petrol affect the middle- and lower-middle classes, who utilize the fuel for their daily commute. Hikes to the price of diesel, meanwhile, are considered inflationary, as it is mostly used in heavy transport and can impact the prices of essential commodities.