ISLAMABAD: The federal government has slashed petrol price by Rs7.54 for the next fortnight, effective August 1, the Finance Division said on Thursday.

In a notification, the Finance Division said that after the decrease, the petrol price has been lowered to Rs264.61 per litre.

Meanwhile, the rate of diesel was increased by Rs1.48 per litre, pushing the price of the petroleum product to Rs285.83 per litre, the notification added.

The decision was taken following a review of prevailing international market trends and upon the recommendations of Oil and Gas Regulatory Authority and relevant ministries, a statement from the division said.

In the previous fortnight, the price of petrol increased by Rs5.36 per litre, while the price of diesel rose by Rs11.37 per litre.

Petrol powers small vehicles, rickshaws, and bikes, making price hikes especially hard on middle- and lower-income households who depend on it for daily commuting.

In contrast, a substantial portion of the transport sector depends on high-speed diesel. Its price is considered inflationary due to its widespread use in trucks, buses, trains, and farm machinery, such as tractors and tube wells.

The increased cost of high-speed diesel directly contributes to the rising prices of vegetables and other essential food items.