The federal government has reduced the price of petrol by Rs0.84 per litre and High-Speed Diesel (HSD) by Rs2.63 per litre, bringing petrol to Rs389.28 per litre and HSD to Rs412.12 per litre.
According to a Petroleum Division notification, the revised prices will apply from September 25.
The government continues to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
The reduction comes as global oil prices rose on Thursday following a Houthi missile attack on Saudi Arabia, which revived concerns over possible supply disruptions.
Brent crude rose $3.52, or 3.4 percent, to settle at $106.60 per barrel, while US West Texas Intermediate (WTI) increased $2.45, or 2.7 percent, to $94.61.
Both contracts had gained about five percent at their session highs before prices eased after reports that the US and Iran discussed reopening the Strait of Hormuz.
In Pakistan, HSD has fallen from its peak of Rs520.35 per litre recorded on April 3. Its price had risen from Rs281 per litre after the United States (US)-Iran war began on February 28.
Petrol had also reached a peak of Rs458.41 per litre on April 3 after starting to rise from Rs266 in the first week of March.
The government has also reintroduced several austerity measures in response to rising fuel prices amid the ongoing conflict in the Middle East. Under the 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 motorcycles, rickshaws and vehicles with engines up to 800cc to “alleviate the burden” of rising global oil prices.
The government previously shifted to daily fuel price revisions after Petroleum Minister Ali Pervaiz Malik announced on July 17 that prices will be fixed each day due to fluctuations in international oil prices following renewed hostilities between Iran and the US.
Before the shift to daily revisions, the government had announced weekly fuel price changes since early March, along with fuel conservation measures over concerns about possible oil supply disruptions.
In April, the federal government also announced targeted measures to provide subsidised fuel.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, while HSD is mainly used in heavy transport, power plants and large generators.
Petrol and HSD also remain the main revenue-generating petroleum products, with monthly sales of around 700,000 to 800,000 tonnes, compared with monthly kerosene demand of around 10,000 tonnes.
