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Fuel Prices Rise as Global Markets Remain Volatile
The government on Tuesday increased the prices of petrol and high-speed diesel (HSD) by Rs1.08 and Re0.51 per litre, respectively, amid volatility in international oil markets. Under the revised rates, petrol will now cost Rs343.87 per litre, while HSD will be priced at Rs370.92 per litre.
According to the notification, the new fuel prices will be effective for September 2. The government charges Rs114 per litre in taxes on petrol and Rs100 per litre in taxes and duties on HSD.
Daily Pricing Mechanism Continues
The Oil and Gas Regulatory Authority (OGRA) continues to publish daily petroleum prices based on a seven-day average of international market prices. The regulator is authorised to announce daily prices without prior government approval, while prices notified on Fridays remain unchanged on Saturdays and Sundays.
The government switched to a daily fuel price review mechanism amid volatility in global oil rates following the Middle East conflict. Previously, petroleum rates were revised fortnightly.
Additional Context
The government had introduced a weekly fuel price review system after the conflict began on February 28, when Israel and the United States attacked Iran, leading Tehran to shut the Strait of Hormuz — the main route for around a fifth of global energy supplies. Tensions have mounted since a fragile June truce collapsed, reviving fears of full-scale war.
