The federal government on Thursday announced a Rs. 7.54/liter reduction in the price of petrol for the next two weeks, a welcome development after several rounds of continuous increases.
However, the price of high-speed diesel—primarily utilized by the agriculture and transport sectors—has been increased by Rs. 1.48/liter.
In a notification, the Ministry of Finance said the decision resulted from a review of prevailing international market trends and the recommendations of the Oil and Gas Regulatory Authority (OGRA) and relevant ministries. The revision marks a drop in petrol prices following four consecutive hikes.
According to the notification, the price of petrol has been reduced to Rs. 264.61/liter from Rs. 272.15/liter, while the price of high-speed diesel has been increased to Rs. 285.83/liter from Rs. 284.35/liter.
Petrol is used primarily for small vehicles, rickshaws, and motorcycles, making price hikes especially hard on middle- and lower-income households who depend on it for their daily commute. The transport sector, meanwhile, largely depends on high-speed diesel, with observers citing hikes as inflationary due to its impact on input costs of agriculture and the transport of essential commodities.
A leading energy analyst described the petrol reduction as a “positive development for the public,” noting it may ease some inflationary pressure.
Pakistan revises its consumer fuel prices every two weeks, with adjustments linked to international market dynamics, currency movements, and domestic tax policies such as the Petroleum Development Levy and the Climate Support Levy, which are cumulatively responsible for Rs. 77.01/liter duty on diesel and Rs. 78.02/liter on petrol.