KARACHI: Pakistan’s government has slashed the price of petrol by Rs7.54 per liter for the next fortnight and increased the price of high-speed diesel (HSD) by Rs1.48 per liter, the Finance Division announced late Thursday.

The revised prices of the petroleum products take effect from Aug. 1, the notification said. As per the new prices, petrol will now cost Rs264.61 per liter, down from Rs272.15 per liter. The price of a liter of HSD will now cost Rs285.83 per liter, up from Rs284.35 per liter.

“Following a review of prevailing international market trends and upon the recommendations of OGRA and relevant ministries, the government has revised the prices of petroleum products for the next fortnight,” the notification read.

Fuel prices in Pakistan are adjusted every two weeks and are influenced by global oil market trends, currency fluctuations and changes in domestic taxation. The increases have a direct impact on inflation, raising production and transportation costs and driving up the prices of essential goods and services, particularly food. The effect is further amplified by Pakistan’s reliance on imported fuel.

The latest reduction in fuel prices will provide much needed relief to the masses. On June 16, the government raised the price of petrol by Rs4.80 per liter and HSD by Rs7.95, which was followed by another hike on July 1, with the price of petrol raised by Rs8.36 and HSD by Rs10.39.

Earlier this month, the government hiked the price of petrol by Rs5.36 per liter and diesel by Rs11.37 per liter for a third consecutive time.

Fuel price volatility escalated in July during the 12-day conflict between Iran and Israel, when Pakistan instructed oil marketing companies to maintain mandatory reserve levels.

While the government ruled out supply shortages, the conflict triggered concerns about a potential disruption in oil flows through the Strait of Hormuz.