The government has reduced the price of petrol by Rs3.93 per litre, bringing its retail price to Rs386.30 per litre. The government continues to impose taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.
According to a notification issued by the Petroleum Division, the revised prices will remain in effect from October 17 (Saturday) to October 19 (Monday).
The price of high-speed diesel (HSD) has declined from its peak of Rs520.35 per litre, recorded on April 3. Diesel prices had begun climbing from Rs281 per litre following the outbreak of the US-Iran war on February 28.
Petrol prices also reached a record high of Rs458.41 per litre on April 3, after beginning their upward trajectory from Rs266 per litre in the first week of March.
Amid rising fuel costs and the ongoing conflict in the Middle East, the government has reinstated several austerity measures aimed at conserving fuel and reducing 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 announced a relief scheme for motorcycle users, auto-rickshaw operators and owners of vehicles with engine capacities of up to 800cc to ease the burden of rising international oil prices.
Earlier, on July 17, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would be determined daily in response to fluctuations in international markets following renewed hostilities between Iran and the United States.
Before the shift to daily pricing, the government had been revising fuel prices weekly since early March while introducing conservation measures amid concerns over potential oil supply disruptions linked to the Middle East conflict.
In April, the federal government also announced targeted relief measures to provide subsidised fuel to eligible consumers.
The petroleum minister said the cabinet and prime minister had assigned the Oil and Gas Regulatory Authority (Ogra) responsibility for determining fuel prices daily in line with international market trends.
Petrol is primarily used by private vehicle owners, small-car users, motorcycle riders and rickshaw operators. Changes in its price directly affect household transport expenses, particularly for middle- and lower-middle-income groups.
Diesel prices also have a broad economic impact because high-speed diesel is widely used by heavy transport vehicles, power plants and large generators. Any increase or decrease can influence transportation costs, electricity generation expenses and the prices of goods.
Petrol and high-speed diesel remain the country’s major petroleum revenue generators, with monthly sales estimated at around 700,000 to 800,000 tonnes each, compared with monthly kerosene demand of approximately 10,000 tonnes.
