The federal government has reduced the price of petrol by Re0.14 per litre and High-Speed Diesel (HSD) by Rs1.89 per litre, with the revised rates taking effect from October 1.
Petrol will now be sold at Rs387.40 per litre, while the price of HSD has been set at Rs400.35 per litre, according to a Petroleum Division notification. The government continues to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
The revision comes as international oil prices fell on Thursday, with Brent crude declining 1.1 percent to $96.92 per barrel and United States (US) West Texas Intermediate (WTI) crude dropping 1.4 percent to $89.18 per barrel.
Oil prices fell as recovering crude exports from the Gulf and a rise in US inventories eased supply concerns, while investors also weighed renewed US-Iran diplomatic efforts to end the conflict in the Middle East.
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 Rs458.41 per litre on April 3 after 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 have to close by 9pm, while fuel allocations for official vehicles have been reduced by 50 percent for three months.
Prime Minister (PM) Shehbaz Sharif announced a relief scheme on September 13 for users of motorcycles, autos and vehicles with engines up to 800cc to address the impact of rising global oil prices.
Deputy Prime Minister (DPM) and Foreign Minister (FM) Ishaq Dar reviewed the implementation of the scheme on September 29 and said its progress reflected a “whole of government” approach. He noted that the information, IT and petroleum ministries, Oil and Gas Regulatory Authority (OGRA), State Bank of Pakistan (SBP) and all provinces had contributed to its implementation.
Around 7.60 million registrations have been completed so far, while the token redemption process has entered its second week, with 7.71 million tokens redeemed.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, while HSD is used in heavy transport, power plants and large generators. Both fuels remain major revenue earners, with monthly sales of around 700,000 to 800,000 tonnes compared with monthly kerosene demand of about 10,000 tonnes.
