The federal government has reduced the price of petrol by Rs1.60 per litre but increased the rate of High-Speed Diesel (HSD) by Rs1.64, setting the new prices at Rs377.71 and Rs391.75 per litre, respectively, from October 23.
The Petroleum Division announced the revised rates in a notification on Thursday. The government continues to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
The changes come as international oil prices remain elevated amid concerns over energy supply disruptions in the Middle East. Brent crude futures fell 21 cents, or 0.2 percent, to $112.96 per barrel, while United States (US) West Texas Intermediate (WTI) crude declined 27 cents, or 0.3 percent, to $98.12 per barrel.
Both benchmarks had gained four percent in the previous session, reaching a five-month high after Houthi attacks on Saudi Arabia.
The latest revision follows months of fluctuations in domestic fuel prices. HSD had reached 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 also peaked at Rs458.41 per litre on April 3, after climbing from Rs266 in the first week of March.
The government has also reintroduced austerity measures in response to rising fuel costs amid the ongoing Middle East conflict. Under the measures, markets must close by 9pm, while fuel allocations for official vehicles have been reduced by 50 percent for three months.
On September 13, Prime Minister (PM) 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 burden of rising international oil prices.
Petrol is primarily used in private vehicles, small cars, rickshaws and motorcycles, making its price relevant to middle- and lower-middle-income households. Diesel, meanwhile, is widely used in heavy transport, power plants and large generators, linking changes in its price to transport and energy costs.
Petrol and high-speed diesel remain the government’s main petroleum revenue sources, with monthly sales of around 700,000 to 800,000 tonnes each, compared with monthly kerosene demand of about 10,000 tonnes.
