Petrol price hiked by Rs2.29, HSD’s by Rs1.11

Business Recorder reported that the government raised fuel prices for Thursday, September 3, after global oil rates climbed amid mounting Middle East tensions. Petrol will now cost Rs346.16 per litre, up Rs2.29 from Rs343.87, while high-speed diesel (HSD) rises by Rs1.11 to Rs372.03 per litre. The report also said that the US-Iran conflict and disruption in the Strait of Hormuz have kept pushing petroleum rates higher, producing near-daily domestic adjustments.

Petroleum Division figures show dealer margins held at Rs9.98 per litre for each fuel, while the Petroleum Levy stayed at Rs80 per litre each. The Karachi cost of supply is Rs212.26 for petrol and Rs248.43 for HSD, with the remainder made up of taxes, duties and margins. On petrol, customs duty is Rs20.65 and on HSD it is Rs15.68, both per litre, and the Climate Support Levy stays at Rs5 per litre.

Sales data for August also weighed on the sector, with petroleum product sales down 16 percent month-on-month from 1.51 million tonnes in July. Petrol sales fell 9 percent to 0.67 million tonnes, while HSD sales dropped 32 percent, and the report linked the overall decline to continuing price rises. Petroleum dealers have sought a monthly price review system, but the government has turned that down in preference to frequent, short-term adjustments.