Despite a drop in international oil prices amid prospects of a resolution to the tensions in the Middle East, the federal government has raised petrol prices by Rs1.54 per litre and High-Speed Diesel (HSD) by Rs2.16 per litre, taking the prices of both to Rs379.25 and Rs395.82 per litre, respectively.
The hike came despite brent crude futures falling by $1, or 0.86 percent, to $114.81 per barrel on Tuesday, while United States (US) West Texas Intermediate (WTI) crude dropped by 88 cents, or 0.86 percent, to $100.88 per barrel.
The easing in international oil prices came as prospects for a resolution to the conflict kept supply concerns at bay, despite renewed Houthi attacks on Saudi Arabia.
According to the Petroleum Division’s notification, the revised domestic fuel prices took effect on Tuesday, Oct 27.
The government continues to collect Rs114 per litre in taxes and duties on petrol and Rs100 per litre on HSD. The price revision came days after the Pakistan Petroleum Dealers Association urged consumers against panic buying on Friday, warning that excessive purchases could distort the market.
Fuel availability also came under discussion in the Senate on the same day, with lawmakers raising concerns over possible supply shortages. Minister of State for Finance and Revenue Bilal Azhar Kayani told senators that the country faced no supply issues.
HSD prices have fallen from a peak of Rs520.35 per litre recorded on April 3. The rate had started climbing from Rs281 per litre after the US-Iran war broke out on Feb 28. Petrol prices also reached a peak on April 3, when the rate stood at Rs458.41 per litre, after rising from Rs266 in the first week of March.
The government has also reintroduced austerity measures to conserve fuel amid the Middle East conflict. Under the measures, markets must close by 9 pm, while fuel allocations for official vehicles have been reduced by 50 percent for three months.
On Sept 13, Prime Minister (PM) Shehbaz Sharif also announced a relief scheme for motorcyclists, auto-rickshaw operators and owners of vehicles with engine capacities of up to 800cc to ease the impact of rising global oil prices.
