Islamabad: The federal government has announced a Rs7.54 per litre reduction in petrol prices, providing partial relief to consumers amid growing inflation and public criticism over recent fuel hikes.
According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the new price of petrol is fixed at Rs264.61 per litre, down from Rs272.15. In contrast, high-speed diesel (HSD) has seen a minor increase of Rs1.48 per litre, bringing its new price to Rs285.83.
The revised rates will take effect from 12am on August 1 (Friday). OGRA reviews fuel prices fortnightly, adjusting them in line with international market trends and local tax structures.
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The government has faced severe criticism in recent weeks for raising fuel prices despite a decline in international oil markets. Critics argue that the government’s reliance on petroleum levy collections and indirect taxation continues to burden the low- and middle-income groups, who are most vulnerable to rising transportation costs.
The persistent depreciation of the rupee since 2018, along with IMF-backed fiscal measures, has triggered a wave of inflation affecting all essential commodities. Fuel, being a key price determinant, continues to directly impact the cost of living.
Meanwhile, the government also remains under pressure over the ongoing sugar crisis, with prices rising despite an earlier agreement to fix the ex-mill rate at Rs165 per kg.
Economic analysts warn that without broadening the tax base and reducing dependency on indirect levies, fuel price volatility will continue to erode the purchasing power of ordinary citizens.
