The government has reduced the price of petrol by Rs2.93 per litre while increasing the rate of high-speed diesel (HSD) by Rs0.61 per litre, according to an official notification issued by the Petroleum Division.
Following the latest revision, petrol will be available at Rs395.37 per litre, while high-speed diesel will cost Rs396.85 per litre. The revised prices took effect on Tuesday, October 13.
The government continues to impose taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.
Despite the latest adjustment, both petroleum products remain below the record highs they reached earlier this year. High-speed diesel had climbed to Rs520.35 per litre on April 3 after rising from Rs281 per litre following the outbreak of the US-Iran war on February 28.
Petrol prices also peaked at Rs458.41 per litre on April 3, having increased 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 motorcyclists, auto-rickshaw users and owners of vehicles with engine capacities of up to 800cc to ease the financial burden 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 markets and renewed tensions between Iran and the United States.
Before the policy change, the government had been revising petroleum prices weekly since early March amid concerns over potential disruptions to oil supplies caused by the Middle East conflict.
The federal government also announced targeted fuel subsidies in April to provide relief to eligible 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 vehicles, small cars, rickshaws and motorcycles. Changes in its price directly affect middle- and lower-middle-income households by influencing transportation and other living expenses.
High-speed diesel is widely used in heavy transport, power plants and large generators. Consequently, changes in diesel prices can affect freight costs, electricity generation and the prices of goods and services.
Petrol and high-speed diesel remain the country’s major petroleum revenue-generating products, with combined monthly sales volumes significantly exceeding those of other fuels. Their monthly sales range from approximately 700,000 to 800,000 tonnes, while kerosene demand stands at around 10,000 tonnes.
