The government on Thursday cut the price of petrol by Rs0.43 per litre but raised that of high-speed diesel (HSD) by Rs3.47 per litre.

Following the revision, petrol will retail at Rs390.79 per litre while HSD will cost Rs424.92 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

According to the Petroleum Division’s notification, the new prices will be applicable on Sept 18 (Friday).

According to Oil and Gas Regulatory Authority (OGRA), the increase is primarily linked to higher petrol and diesel prices in the international market.

The regulator said the prices were revised based on international market rates, premiums and other relevant factors.

The price of HSD has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28.

The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.

The government has reintroduced a raft of austerity measures in response to rising fuel prices, including requiring markets to close by 9pm and cutting fuel allocations for official vehicles by 50 per cent for three months.

On September 13, Prime Minister Shehbaz Sharif announced a “relief scheme” for users of motorcycles, autos and vehicles of up to 800cc to “alleviate the burden” of rising global oil prices.

A statement from the Prime Minister’s Office (PMO) said owners of two- and three-wheelers would receive relief of Rs100 per litre on a monthly quota of 20 litres, while owners of vehicles up to 800cc would receive the same relief on a monthly quota of 30 litres.

On July 17, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.

Prior to this, the government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East. The federal government in April also announced targeted relief measures to provide subsidised fuel.

The petroleum minister stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends.

Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.

Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.

Petrol and high-speed diesel (HSD) are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.