The federal government has increased the price of petrol by Re0.88 per litre while reducing the price of High-Speed Diesel (HSD) by Rs1.88 per litre, as global oil prices edged lower following an increase in Middle East crude exports.
Petrol will now cost Rs393.64 per litre, while HSD will be available at Rs397.76 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
According to a Petroleum Division notification, the revised prices will apply from Oct 6.
Brent crude futures fell $1.20, or 1.17 percent, to $101.05 a barrel, while United States (US) West Texas Intermediate (WTI) crude dropped $1.16, or 1.27 percent, to $89.95. The decline followed higher crude exports from the Middle East and the G7 commitment to increase supplies, although concerns over disruptions linked to the US war with Iran continued to limit selling.
The latest revision takes the HSD price further down from its peak of Rs520.35 recorded on April 3. HSD had risen from Rs281 per litre after the US-Iran war began on February 28.
Petrol, meanwhile, had 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 to conserve fuel amid the ongoing Middle East conflict. Under the measures, markets will close by 9pm, while fuel allocations for official vehicles have been cut by 50 percent for three months.
Prime Minister (PM) Shehbaz Sharif had announced a relief scheme on September 13 for motorcycles, auto-rickshaws and vehicles of up to 800cc to help users deal with higher global oil prices.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, while HSD is used mainly in heavy transport, power plants and large generators.
Petrol and HSD remain the major revenue earners among petroleum products, with monthly sales of around 700,000 to 800,000 tonnes, compared with monthly kerosene demand of around 10,000 tonnes.
