Govt hikes petrol price by Rs9.99 per litre

The government has hiked the petrol price in the country by Rs9.99 per litre under the latest fortnightly review of the fuel rates. 

Moreover, the price of high-speed diesel (HSD) has also been hiked from Rs277.45 per litre to Rs283.63 with an increase of Rs6.18.

The Finance Division issued a notification for the latest fuel prices, saying the fresh hike in rates came in the light of a rise in oil rates in the international market.

"The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market," the statement read.

The government had increased the petroleum development levy (PDL) by Rs10 per litre — from Rs60 to Rs70 — in the federal budget 2024-25, further burdening the inflation-hit masses.

However, the Finance Division said that there no change has been made in the applicable duties or levies under the new prices which will remain at the existing level, meaning that the PDL remains Rs60 per litre on the petroleum products.

This is the second time that the government hasn't increased the levy on petroleum products since the passing of the federal budget on June 28.

Petrol is mainly utilised in private transportation, small vehicles, rickshaws, and two-wheelers, greatly impacting the budgets of the middle and lower-middle classes.

However, a significant portion of the transport sector relies on high-speed diesel. Its price is viewed as inflationary since it is predominantly used in heavy transport vehicles, trains, and agricultural machinery such as trucks, buses, tractors, tube wells, and threshers, which particularly contributes to the increased prices of vegetables and other food items.