Govt increases petrol price by Rs2.97, slashes high-speed diesel by Rs32.63

Govt increases petrol cost by Rs2.97, slashes high-speed diesel by Rs32.63.

Key points

• Petrol and high-speed diesel (HSD) are the major revenue earners, with monthly sales of regarding 700, 000 to 800, 000 tonnes, compared to just 10, 000 tonnes of monthly demand for kerosene.
• The petrol cost had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.
• After the revision, petrol will retail at Rs337.51 per litre while HSD will cost Rs363.06 per litre.
• The administration on Wednesday raised the rate of petrol by Rs2.97 per litre and cut that of high-speed diesel (HSD) by Rs32.63.
• The cost of HSD has come down from a peak of Rs520.35 recorded on April 3.

In practice, the administration on Wednesday raised the rate of petrol by Rs2.97 per litre and cut that of high-speed diesel (HSD) by Rs32.63.

After the revision, petrol will retail at Rs337.51 per litre while HSD will cost Rs363.06 per litre. The administration continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

According to the Petroleum Division's notification, the new rates will be applicable for August 20 (Thursday).

For context, the cost of HSD has come down from a peak of Rs520.35 recorded on April 3. Its cost had kicked off rising from Rs281 per litre after the US-Iran war broke out on February 28.

For context, the petrol cost had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.

Earlier, Petroleum Minister Ali Pervaiz Malik confirmed that fuel costs would now be fixed on a daily basis due to fluctuations in international market rates after renewed hostilities between Iran and the US.

Notably, the administration had been announcing weekly revisions to fuel costs since early March, alongside measures for the conservation of fuel against the backdrop of feasible oil supply disruptions due to the ongoing conflict in the Middle East. The federal administration in April additionally confirmed targeted relief measures to provide subsidised fuel.

According to The petroleum minister, the cabinet and the prime minister had decided to offer the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel costs on a daily basis based on international market trends.

Petrol is mainly applied in private transport, small vehicles, rickshaws and two-wheelers, and changes in its rate affect the middle and lower-middle classes.

As it is mainly employed in the heavy transport sector, power plants and sizeable generators, similarly, changes in diesel rates additionally impact the public at sizeable.

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For now, govt increases petrol price by Rs2.97, slashes high remains the part of the story worth watching, and further updates are likely as more details are confirmed.