The federal government has reduced petrol prices by Rs5.45 per litre and High-Speed Diesel (HSD) by Rs3.68 per litre, bringing the new rates to Rs369.06 and Rs391.52, respectively, from Wednesday, November 4.
The Oil and Gas Regulatory Authority (OGRA) issued a notification confirming the revised prices, which followed a decline in international oil rates.
Brent crude futures fell 26 cents, or 0.25 percent, to $103.34 per barrel, while United States (US) West Texas Intermediate (WTI) crude futures dropped 53 cents, or 0.55 percent, to $95.56 in early trade on Wednesday.
Meanwhile, the government continues to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
The latest revision followed a 30-day arrangement announced by the government 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 working to introduce a similar arrangement for Liquefied Petroleum Gas (LPG). He also indicated further reductions in fuel prices, saying that “even better news will come before us”.
Meanwhile, Jamaat-i-Islami (JI) and the government held another round of discussions on providing relief to low-income citizens amid petroleum price fluctuations. Both sides agreed to continue negotiations in the coming days.
The latest reduction came after petrol and HSD prices had climbed following the outbreak of the US-Iran war on February 28. HSD had reached Rs520.35 per litre on April 3, having risen from Rs281 per litre. Petrol also peaked at Rs458.41 on the same date after increasing from Rs266 in the first week of March.
The government has also introduced measures to conserve fuel amid the Middle East conflict. Under the austerity 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 motorcycle users, auto-rickshaws and owners of vehicles with engines up to 800cc to reduce the impact of rising international oil prices.
Petrol is primarily used in private transport, small vehicles, auto-rickshaws and motorcycles, making its price a factor for middle- and lower-middle-income households. HSD, meanwhile, is widely used in heavy transport, power plants and large generators, meaning changes in its price also affect the wider public.
