Pakistan Cuts Petrol by Rs1.65, HSD by Rs0.88
The federal government announced a reduction in the retail price of petrol by Rs1.65 per litre and high‑speed diesel (HSD) by Rs0.88 per litre, effective from September 19 to 21. Under the new schedule, petrol will sell at Rs389.14 per litre while HSD will be priced at Rs424.04 per litre. These adjustments come after a series of weekly revisions that have seen fuel prices rise sharply since early March, driven largely by fluctuations in international markets and geopolitical tensions in the Middle East.
Despite the price cuts, the government continues to impose a tax of Rs114 per litre on petrol and Rs100 per litre on diesel. The Petroleum Division’s notification confirms that the new rates will be applied for a three‑day window, after which the Oil and Gas Regulatory Authority (OGRA) will reassess the prices based on global oil benchmarks, premiums, and other relevant factors. OGRA’s statement highlighted that the revisions are a direct response to the upward trend in global oil prices, which have been influenced by the renewed hostilities between Iran and the United States.
Prime Minister Shehbaz Sharif’s administration has introduced a range of austerity measures to mitigate the impact of rising fuel costs on the public. These measures include a mandatory 9 pm market closure, a 50 % reduction in fuel allocations for official vehicles for three months, and a relief scheme for two‑ and three‑wheelers. Under the scheme, owners of vehicles up to 800 cc will receive Rs100 per litre of relief on a monthly quota of 30 litres, while owners of smaller two‑wheelers will receive the same relief on a 20‑litre quota. The government’s strategy aims to curb consumption, conserve fuel, and protect the middle and lower‑middle classes from the steepest price increases.
Historically, the price of HSD peaked at Rs520.35 on April 3, while petrol reached Rs458.41 on the same day. Since the outbreak of the US‑Iran conflict on February 28, both fuels have experienced a steady climb, with petrol rising from Rs266 in early March and HSD from Rs281. The daily pricing mechanism, introduced by Petroleum Minister Ali Pervaiz Malik on July 17, allows OGRA to adjust rates in real time, thereby reducing the lag between international market shifts and domestic pricing.
Fuel remains a critical revenue source for the government, with monthly sales of 700,000 to 800,000 tonnes for petrol and HSD combined. The government’s ongoing efforts to balance fiscal stability with consumer protection underscore the complex dynamics of Pakistan’s energy sector, where international market volatility, domestic policy decisions, and public demand intersect.
