The federal government has reduced the price of petrol by Rs2.71 per litre while increasing the rate of high-speed diesel (HSD) by 31 paisa per litre, according to an official notification issued by the Petroleum Division.
Following the revision, petrol will be available at Rs379.31 per litre, while high-speed diesel will cost Rs390.11 per litre. The revised prices will take effect from Thursday, October 22.
The government continues to impose taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.
The latest adjustment comes after a significant decline in fuel prices from their record highs earlier this year.
High-speed diesel, which reached Rs520.35 per litre on April 3, has since fallen considerably. Its price had begun climbing from Rs281 per litre following the outbreak of the US-Iran conflict on February 28.
Petrol prices also surged to Rs458.41 per litre on April 3, after rising from Rs266 per litre in the first week of March.
Amid continued uncertainty in global energy markets and the ongoing conflict in the Middle East, the government has reinstated several austerity measures to conserve fuel and reduce expenditure.
Under the measures, markets are required to close by 9pm, while fuel allocations for official vehicles have been reduced by 50 per cent for three months.
On September 13, Prime Minister Shehbaz Sharif also announced a relief scheme for motorcycle users, rickshaws and owners of vehicles with engine capacities of up to 800cc to ease the impact of rising international oil prices.
In July, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would be determined daily in response to fluctuations in international oil markets following renewed hostilities between Iran and the United States.
Previously, the government had been revising fuel prices weekly since early March, alongside measures aimed at conserving fuel amid concerns over possible disruptions to oil supplies due to the Middle East conflict.
The federal government also announced targeted fuel subsidies in April to provide relief to affected consumers.
The petroleum minister said the cabinet and prime minister had assigned the Oil and Gas Regulatory Authority (OGRA) the responsibility of determining fuel prices daily in line with international market trends.
Petrol is primarily used by private motorists, small vehicles, rickshaws and motorcycles. Changes in its price directly affect household budgets, particularly those of middle- and lower-middle-income groups.
High-speed diesel, meanwhile, is widely used in heavy transport, agricultural machinery, power plants and large generators. Changes in diesel prices can therefore influence transportation costs, electricity generation expenses and the prices of essential commodities.
Petrol and high-speed diesel remain the country’s major petroleum revenue generators, with monthly sales ranging between 700,000 and 800,000 tonnes each, compared with monthly kerosene demand of approximately 10,000 tonnes.
