Pakistan Fuel Prices Frozen

The government of Pakistan has kept petrol and diesel prices unchanged for August 11, with petrol priced at Rs327.62 per litre and high-speed diesel at Rs380.86 per litre.

In contrast, petrol prices in other major cities in India, including Bengaluru, Hyderabad, and Kolkata, are above ₹110 per litre.

The price of high-speed diesel in Pakistan has come down from a peak of Rs520.35 recorded on April 3. The petrol price in Pakistan had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.

Petrol and diesel prices in India have remained steady since May 25, when state-owned Oil Marketing Companies raised petrol prices by ₹2.61 per litre and diesel prices by ₹2.71 per litre.

## What's Next The Himachal Pradesh government in India has introduced a widow/orphan cess on petrol and diesel, with a charge of up to Rs 5 per litre. Additionally, India aims to source up to a quarter of its liquefied petroleum gas imports from the United States by 2027. LPG sales in India have fallen 17.4% to 2.37 million tonnes, mainly due to a shift towards piped natural gas following the West Asia crisis.

## Why it Matters The unchanged fuel prices in Pakistan and India have significant implications for the economy and consumers. The government of Pakistan's decision to keep fuel prices steady is likely to provide relief to consumers, while the introduction of the widow/orphan cess in Himachal Pradesh may increase the burden on consumers in the state. The shift towards piped natural gas and the decline in LPG sales also indicate a changing energy landscape in India.

However, in a recent update, the government of Pakistan reduced the price of petrol by Rs1.70 and increased the price of high-speed diesel by Rs1.39 per litre, effective from August 12. The new prices of petrol and high-speed diesel in Pakistan are Rs325.92 per litre and Rs382.25 per litre, respectively.