Petrol prices drop by Rs3 and high-speed diesel falls by Rs7 per litre as the government announces another round of reductions on Wednesday, bringing relief to motorists after months of volatile fluctuations linked to regional conflict.
Petrol and Diesel Prices Change Starting Thursday
- Petrol retails at Rs335 per litre and high-speed diesel costs Rs364 starting on Thursday, according to an Oil and Gas Regulatory Authority notification.
- Oil refineries contribute to the petroleum levy by bearing a cumulative impact of Rs15 billion over 30 days under an arrangement announced on Nov 2.
- Taxes and duties on diesel stand at Rs100 per litre, alongside Rs114 per litre charged on petrol.
New Retail Rates Reflect Refinery Contributions and Tax Levies
Following the revision, petrol will retail at Rs335 per litre, while high-speed diesel will cost Rs364 on Nov 12, according to a notification by the Oil and Gas Regulatory Authority. Taxes and duties amounting to Rs114 per litre on petrol and Rs100 per litre on diesel continue to be levied by the authorities.
Under an arrangement announced on Nov 2, for 30 days, oil refineries were to contribute to the petroleum levy by bearing a cumulative impact of Rs15 billion, according to the government. This allows a Rs14.71 reduction in the petrol price at the consumer end.
Government Rolls Out Fuel Relief Scheme Amid Price Negotiations
In an effort to alleviate financial pressures on citizens resulting from Middle Eastern tensions, the administration launched the Prime Minister’s Fuel Relief Scheme nationwide on Sept 17. The subsidy scheme applies to owners of motorcycles, rickshaws and vehicles of up to 800cc.
The government and Jamaat-i-Islami held another round of negotiations on Wednesday to formulate a way forward on relief in petroleum prices.
| Fuel Type | Pre-Crisis Baseline | Peak Price (April 3) | Current Price (Nov 12) |
|---|---|---|---|
| High-Speed Diesel | Rs281.00 | Rs520.35 | Rs364.00 |
| Petrol | Rs266.00 | Rs458.41 | Rs335.00 |
Fuel Prices Drop from Peaks as Austerity Measures Return
The price of high-speed diesel has come down from a peak of Rs520.35 recorded on April 3. Following the outbreak of the US-Iran war on Feb 28, rates had begun climbing upward from the Rs281 per litre mark.
After commencing its upward movement from Rs266 during the opening week of March, the cost of petrol reached its highest point of Rs458.41 on April 3. The government has also reintroduced several austerity measures to address rising fuel prices caused by the Middle East conflict.
Official vehicles face a 50pc reduction in fuel quotas for a three-month duration, alongside a mandated 9pm closure time for marketplaces under these directives. Due to ongoing volatility in global markets triggered by renewed US-Iran hostilities, authorities have adjusted petroleum rates almost daily beginning July 17.
Daily Pricing Mechanism and Market Impact
The petroleum minister said that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority the responsibility of deciding fuel prices on a daily basis based on international market trends. Prior to this, the government had been announcing weekly revisions to fuel prices since early March.
Because petrol is primarily utilized by two-wheelers, rickshaws, compact automobiles, and private commuters, shifts in its cost directly influence lower-middle and middle-income demographics. In a similar manner, fluctuations in diesel rates affect the broader population, given its primary application across heavy-duty transport networks, large backup generators, and electrical power generation facilities.
Monthly sales figures for high-speed diesel and petrol range between 700,000 and 800,000 tonnes, establishing them as primary revenue generators, whereas kerosene registers a modest monthly demand of only 10,000 tonnes.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
