The federal government has reduced the price of petrol by Rs2.71 per litre and High-Speed Diesel (HSD) by Rs0.03 per litre, bringing their rates to Rs392.66 and Rs396.82 per litre, respectively.
A Petroleum Division’s notification stated that the revised prices are applicable for Wednesday, October 14. The government continues to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
Diesel prices have fallen from the peak of Rs520.35 per litre on April 3. The rate had started climbing from Rs281 per litre after the United States (US)-Iran war broke out on February 28.
Petrol also reached its highest price of Rs458.41 per litre on April 3, after rising from Rs266 in the first week of March.
The government has also brought back several austerity measures to conserve fuel amid the ongoing conflict in the Middle East. The measures require markets to close by 9pm and cut 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 operators and owners of vehicles with engines up to 800cc to “alleviate the burden” of rising global oil prices.
Petrol is mainly used in private cars, small vehicles, rickshaws and motorcycles, making its price particularly relevant to middle and lower-middle-income households.
Diesel prices also affect the wider public as the fuel powers heavy transport, power plants and large generators.
Petrol and HSD remain the government’s main revenue-generating petroleum products, with monthly sales of around 700,000 to 800,000 tonnes. In comparison, monthly demand for kerosene stands at about 10,000 tonnes.
