The Oil and Gas Regulatory Authority (OGRA) on Thursday updated the prices of petroleum products for Aug. 7 (today), reducing the consumer price of petrol by Rs. 3.19/liter and that of high-speed diesel by Rs. 1.5/liter.
The government updates fuel prices on a daily basis, ostensibly to ensure transparency and allow the immediate impact of international price fluctuations to be passed on to consumers. According to Petroleum Minister Ali Pervaiz Malik, the daily pricing is based on a seven-day weekly average of international market prices to align with international standards.
Following the latest revision, the new rate of petrol is Rs. 329.82/liter, down from Rs. 333.01/liter, while that of diesel is Rs. 382.36/liter, down from Rs. 383.86/liter. These prices include Rs. 80/liter in the form of petroleum development levy on petrol and Rs. 73.47/liter on diesel. Overall, there is roughly Rs. 110/liter in taxes and duties imposed on petrol and Rs. 96/liter on diesel.
The government has also reduced the price of kerosene oil by Rs. 2.36/liter to Rs. 291.45/liter.
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.