ISLAMABAD: Pakistan’s petroleum consumers are facing another sharp fuel shock as petrol price has climbed to Rs380.24 per litre and high-speed diesel (HSD) to Rs409.42 per litre following the latest increases of Rs4.42 and Rs6.10 per litre, respectively.
The latest revision, applicable for September 15, represents the sixth consecutive increase in petroleum prices and has pushed both major fuels to fresh highs, with diesel crossing the Rs400-per-litre mark.
According to the Petroleum Division’s notification, petrol price was increased from Rs375.82 to Rs380.24 per litre, while HSD price rose from Rs403.32 to Rs409.42 per litre.
The impact of the latest increase is particularly significant for diesel users, as HSD is extensively used by trucks, buses, agricultural machinery and other commercial and industrial activities. The Rs6.10-per-litre increase is therefore likely to add to transportation and operating costs across the economy.
For ordinary consumers, the Rs4.42-per-litre increase in petrol will directly raise the cost of commuting, particularly for millions of motorcycle, rickshaw and small-car users. Higher fuel expenditure leaves less disposable income for households already facing increased living costs.
The latest increase also means that motorists and businesses are having to absorb another fuel-price shock after the previous review had already pushed petrol to Rs375.82 and HSD to Rs403.32 per litre.
The successive increases have become particularly burdensome for the transport sector. Higher diesel prices increase the cost of moving passengers and goods, while the impact can eventually be reflected in the prices of commodities transported across the country.
The agricultural sector is also exposed to the diesel increase because tractors, tube wells and other farm machinery rely heavily on diesel. A sustained increase in HSD prices can therefore increase cultivation and transportation expenses.
The latest domestic price increase has come amid a sharp rise in international crude prices, with Brent crude crossing $100 per barrel as attacks on Saudi energy infrastructure and shipping routes heightened concerns over oil supplies.
Brent crude futures rose $2.72, or 2.6%, to $107.33 a barrel, while US West Texas Intermediate crude increased $2.51, or 2.5%, to $102.56 a barrel.
The international market movement is important for Pakistan because the country depends heavily on imported crude oil and petroleum products. Any prolonged increase in global crude prices could therefore keep pressure on the domestic petroleum market and increase the country’s oil import bill.
However, for consumers, the immediate impact is already visible at filling stations, where petrol has reached Rs380.24 per litre and HSD Rs409.42 per litre after six consecutive increases.
With HSD now above Rs400 per litre, the latest increase is likely to have a wider impact on freight, public transport, agriculture and the prices of goods, while the petrol increase will further raise the monthly fuel bill of households and individual motorists.
The continued rise in petroleum prices has consequently emerged as a major cost pressure for both consumers and businesses, particularly if inter
