The federal government cut petrol prices by Rs9.41 per litre and High-Speed Diesel (HSD) by Rs5.56 on Friday, marking the fourth consecutive reduction in fuel rates as international oil markets remained volatile amid developments surrounding the Iran war.
Following the latest revision, petrol will cost Rs352.59 per litre, while HSD will sell at Rs382.25, according to a notification issued by the Oil and Gas Regulatory Authority (OGR).
The government continued to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
Brent crude futures for January delivery rose by $1.57, or 1.6 percent, to $99.86 per barrel on Friday, while US West Texas Intermediate (WTI) futures increased by $1.10, or 1.22 percent, to $91.62 per barrel. Both benchmarks recorded gains for a second consecutive session.
Meanwhile, the government announced a 30-day arrangement on Monday under which oil refineries will contribute a cumulative Rs15 billion towards the petroleum levy.
Petroleum Minister Ali Pervaiz Malik said on Tuesday that the government was also working to introduce a similar mechanism for liquefied petroleum gas (LPG).
HSD prices have fallen from their peak of Rs520.35 per litre, recorded on April 3, after rising from Rs281 following the outbreak of the US-Iran war on February 28. Petrol also reached its highest rate of Rs458.41 on April 3, after climbing from Rs266 in the first week of March.
The government also reintroduced austerity measures in response to rising fuel costs, requiring markets to close by 9pm and reducing fuel allocations for official vehicles by 50 percent for three months.
On September 13, Prime Minister (PM) Shehbaz Sharif announced a relief scheme for motorcycle users, auto-rickshaw owners and people using vehicles with engines of up to 800cc to “alleviate the burden” of rising global oil prices.
Petrol mainly serves private transport, small vehicles, rickshaws and motorcycles, while diesel powers heavy transport, power plants and large generators. The two fuels generate most of the petroleum sector’s revenue, with monthly sales of 700,000 to 800,000 tonnes of petrol and HSD, compared with around 10,000 tonnes of kerosene.
