Diesel price cut by Rs32.63, but why is petrol becomes costlier
The Petroleum Division has issued a notification announcing the petrol and diesel prices for August 20.
The price of high-speed diesel (HSD) has been reduced by Rs32.63 per litre, while the price of petrol has increased by Rs2.97 per litre.
The new price of high-speed diesel is Rs263.06 per litre, while petrol will now cost Rs337.51 per litre.
Earlier today, Federal Petroleum Minister Ali Pervaiz Malik said at a press conference in Islamabad that the government was aware of the difficulties and hardships faced by the public.
He said the government was making every effort to provide immediate relief wherever possible. He added that the decision to provide subsidies on petroleum products was also part of these relief measures.
The decision has brought major relief for consumers and businesses across Pakistan. The new HSD rate will remain effective for August 20.
The government announced the reduction on Wednesday after reviewing petroleum prices. The cut applies to high-speed diesel, while petrol will also have a new rate.
New petrol and diesel rates
Under the revised prices, petrol will be available at Rs337.51 per litre. High-speed diesel will now cost Rs363.06 per litre.
The new rates will remain in effect for the next 24 hours. Consumers can therefore expect the revised prices to apply during August 20.
OGRA moves to daily pricing
OGRA has started publishing daily petroleum prices on its official website. The move is aimed at improving transparency and allowing changes in international oil prices to reach consumers more quickly.
The daily pricing system is designed to respond more closely to movements in global fuel markets. It could also give consumers clearer information about changes in petroleum prices.
How daily prices are calculated
Petroleum Minister Ali Pervaiz Malik said the daily rates are based on a seven-day average of international market prices. He said the method follows international practice for adjusting petroleum prices.
The new system means domestic fuel rates can respond more quickly to changes in global markets. However, the final prices can also depend on other pricing components and government decisions.
The Rs32.63 diesel price cut is significant for consumers, especially transporters and businesses that depend heavily on HSD. Lower diesel costs could also help reduce transportation expenses.
The daily pricing system may make fuel prices more responsive to international market movements. Consumers will now be watching closely to see how global oil prices affect the rates in Pakistan.
Malik said Prime Minister Shehbaz Sharif had also asked refineries to reduce diesel prices. Following the request, the government held several virtual meetings with refinery representatives.
“I am happy to announce that the refineries have accepted the government’s demand while acknowledging the difficulties, and decided on a significant decrease of more than Rs. 30 or Rs 32 in the diesel price,” Malik said. He added, “After some time, you will see that OGRA, after its calculations, will finalise it.”
The minister said refineries had agreed to reduce the price by around Rs30 to more than Rs32 per litre. If the full reduction reaches consumers, diesel prices could see a significant drop at petrol stations.
The expected relief comes soon after the government increased the HSD price by Rs5.27 per litre. The new diesel rate reached Rs395.69 per litre from August 19, while petrol increased by Rs3.34 to Rs334.54 per litre.
If the full Rs32 reduction is passed on to consumers, diesel could fall to around Rs363.69 per litre. However, the final retail price will depend on the official notification, taxes and other pricing components.
Malik linked recent petroleum price pressure to the escalation of regional conflict. Higher international energy costs and supply challenges have added pressure to fuel markets.
He said several countries were facing difficulties in securing diesel supplies. The government is also working to maintain sufficient fuel availability in Pakistan.
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