Business | By Farman Haris
ISLAMABAD — Pakistan’s government on Wednesday reduced the price of petrol by Re0.94 per litre while increasing high-speed diesel by Re0.54, continuing a series of frequent fuel-price adjustments tied to movements in international petroleum markets.
Under the revised rates, petrol will cost Rs324.98 per litre, down from Rs325.92, while high-speed diesel will rise from Rs382.25 to Rs382.79 per litre, according to the Petroleum Division notification. The new prices will apply for August 13.
The latest revision comes just a day after the government cut petrol by Rs1.70 and increased diesel by Rs1.39, highlighting how quickly domestic pump prices are now responding to changes in global markets.
Kerosene Price Also Reduced
The government also cut the price of kerosene by Re0.41 per litre, bringing its new rate to Rs289.27.
At the same time, the petroleum levy on high-speed diesel was increased by Re1 to Rs77.28 per litre. The levy on petrol remains unchanged at Rs80 per litre.
Diesel Remains the Bigger Inflation Concern
Although the latest diesel increase is small, movements in HSD prices have broader economic implications because diesel is heavily used in freight transport, agriculture and commercial activity.
Higher diesel costs can feed into transportation and production expenses and eventually affect consumer prices.
Petrol prices have moved in the opposite direction, providing motorists with another modest reduction after Tuesday’s Rs1.70 cut.
Fuel Taxes Remain High
Government taxes and duties remain a substantial component of retail fuel prices.
The government currently collects about Rs114 per litre in taxes and duties on petrol and approximately Rs100 per litre on high-speed diesel.
Pakistan has shifted toward much more frequent petroleum-price revisions, with OGRA publishing daily rates as authorities seek to pass changes in international prices to domestic consumers more quickly.
Why It Matters
For households, the Re0.94 petrol reduction offers only marginal relief. For the wider economy, however, diesel remains the number to watch.
Pakistan’s transport, agriculture and supply chains rely heavily on HSD, meaning sustained increases could eventually feed into freight costs and inflation even when petrol becomes cheaper.
The latest adjustment therefore delivers a mixed outcome: slightly cheaper fuel for petrol consumers, but another increase for the diesel-dependent economy.