The Government Increases Diesel Price by Rs2.24 per Litre, Decreases Petrol’s by 75 Paise
In a move aimed at stabilizing the fuel market and addressing concerns over rising international prices, the government has increased the price of high-speed diesel (HSD) by Rs2.24 per litre to retail at Rs390.62 per litre from its current rate of Rs388.38 per litre.
The increase in HSD price follows a significant decrease from April 3 when it peaked at Rs520.35 per litre, following the peak prices recorded on February 28 after the US-Iran war broke out. The petrol price had also reached a record high of Rs458.41 per litre on April 3, with its previous peak being Rs458.06 per litre in early March.
The decision to increase HSD price is part of the government’s efforts to reduce fuel prices and alleviate the financial burden on consumers who rely heavily on diesel for transportation purposes. Diesel is mainly used by private transport companies, small vehicles, rickshaws, two-wheelers, and generators, making it a crucial component of their operations.
The petroleum minister has stated that the cabinet and prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends. This decision aims to ensure that fuel prices are adjusted in real-time to reflect changes in global prices, thereby maintaining price stability.
The impact of this change will be felt across various sectors, including private transport companies and generators who rely heavily on diesel for their operations. The government has also announced targeted relief measures to provide subsidized fuel to the middle and lower-middle classes.
On the other hand, petrol is mainly used in public transportation, such as buses and taxis, which are less affected by changes in price due to its higher demand compared to HSD. Petrol sales account for a relatively small portion of the total monthly consumption, with just 10,000 tonnes per month being demanded.
The decision has been met with some resistance from the All Pakistan Dealers Association (APDA), which plans to consider a protest plan this week in response to the government’s move. The association argues that the price adjustment will disproportionately affect small traders and dealers who rely on diesel for their daily operations.
As of now, the new prices are set to take effect from July 30, with petrol priced at Rs335.06 per litre and HSD at Rs390.62 per litre.
Based on reporting from Dawn.
