The government on Monday slashed the prices of petrol and high-speed diesel (HSD) by Rs4.08 and Rs2.45 per litre, respectively, passing on the impact of falling oil prices after US President Donald Trump called off a planned attack on Iran and announced talks with it.

Following the revision, petrol will retail at Rs331.95 per litre, while HSD will cost Rs389.93 per litre. The government continues to levy Rs110 per litre in taxes and duties on petrol and Rs96 per litre on diesel.

The Petroleum Division’s notification said the new prices would be applicable for August 4 (Tuesday).

The diesel price 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.

Earlier, 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.

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.

The daily pricing decision was rejected by the All Pakistan Dealers Association, which said it would consider a protest plan.

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.