The federal government has reduced the price of petrol by Rs1.49 per litre and High-Speed Diesel (HSD) by Rs2.73 per litre, bringing petrol to Rs387.54 per litre and HSD to Rs402.24 per litre.
The revised prices will take effect from Sept 30, according to a Petroleum Division notification. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
Meanwhile, global oil prices rose on Wednesday after President of United States (US) Donald Trump denied he was willing to ease sanctions on Iran, while Qatar pushed for peace talks.
Brent futures for the November contract, which expires on Wednesday, rose 71 cents, or 0.69 percent, to $103.30 a barrel, while US West Texas Intermediate (WTI) crude gained 43 cents, or 0.48 percent, to $89.81.
The latest reduction brings HSD down from its peak of Rs520.35 per litre recorded on April 3. Its price had risen from Rs281 per litre after the US-Iran war began on February 28.
Petrol had also reached a peak of Rs458.41 per litre on April 3 after its price began rising from Rs266 in the first week of March.
The government has also reintroduced austerity measures in response to rising fuel prices amid the ongoing Middle East conflict. Under the measures, markets must close by 9pm, while fuel allocations for official vehicles have been cut by 50 percent for three months.
On Sept 13, Prime Minister (PM) Shehbaz Sharif announced a relief scheme for users of motorcycles, autos and vehicles of up to 800cc to address the impact of rising global oil prices.
Deputy Prime Minister (DPM) and Foreign Minister (FM) Ishaq Dar on Sept 29 reviewed the implementation of the fuel subsidy scheme and appreciated its progress, saying it reflected a “whole of government” approach.
At a meeting of the National Steering Committee on Fuel Subsidy, Dar noted that the information, IT and petroleum ministries, along with OGRA, the State Bank of Pakistan and all provinces, had made concerted efforts for the scheme.
The meeting was informed that around 7.60 million registrations had been completed, while 7.71 million tokens had been redeemed and the token redemption process had entered its second week.
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. Both fuels are major revenue earners, with monthly sales of around 700,000 to 800,000 tonnes, compared with about 10,000 tonnes of monthly kerosene demand.
