The federal government has reduced petrol and High-Speed Diesel (HSD) prices for the Sept 19-21 period, with petrol falling by Rs1.65 per litre and HSD by Rs0.88 per litre.
Following the revision, petrol will be available at Rs389.14 per litre while HSD will cost Rs424.04 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
According to the Petroleum Division’s notification, the revised prices will take effect from Saturday and remain applicable until Monday.
The Oil and Gas Regulatory Authority (OGRA) said that the revision was based on international market rates, premiums and other relevant factors. The regulator attributed the change primarily to movements in international petrol and diesel prices.
The reduction comes as oil markets assess supply concerns in Saudi Arabia alongside tensions in the Middle East. Brent crude futures had fallen by 33 cents, or 0.31 percent, to $104.49 a barrel, while United States (US) West Texas Intermediate (WTI) futures had risen by 88 cents, or 0.86 percent, to $102.79.
The latest reduction follows a period of sharp increases 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 had also reached a peak of Rs458.41 per litre on April 3, after beginning to rise from Rs266 in the first week of March.
In response to rising fuel prices, the government has reintroduced austerity measures that include requiring markets to close by 9pm and reducing fuel allocations for official vehicles by 50% for three months.
On September 13, Prime Minister Shehbaz Sharif announced a relief scheme for users of motorcycles, autos and vehicles of up to 800cc. Under the scheme, owners of two- and three-wheelers are to receive relief of Rs100 per litre on a monthly quota of 20 litres, while owners of vehicles up to 800cc are to receive the same relief on a monthly quota of 30 litres.
On Friday, the prime minister approved a revised structure for the scheme, expanding its coverage to include more two- and three-wheelers and easing weekly limits to give motorists greater flexibility in using the support.
PM Shehbaz, who is currently abroad on an official visit, directed that motorcycles, rickshaws and Qingqi rickshaws up to 20 years old should also be included in the scheme.
The government has also moved towards more frequent fuel price revisions in response to fluctuations in international markets.
On July 17, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would be fixed daily following renewed hostilities between Iran and the US and changes in international market prices.
Before the daily pricing mechanism, the government had been announcing weekly fuel price revisions since early March, along with fuel conservation measures linked to possible oil supply disruptions during the Middle East conflict. The federal government had also announced targeted measures for subsidised fuel in April.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, while HSD is widely used in heavy transport, power plants and large generators.
Petrol and HSD also remain the major revenue-generating petroleum products, with monthly sales of around 700,000 to 800,000 tonnes, compared with monthly kerosene demand of about 10,000 tonnes.
