The federal government has reduced the price of petrol by Rs5.16 per litre and High-Speed Diesel (HSD) by Rs7.69, bringing their rates to Rs381.14 and Rs389.27 per litre, respectively, from October 20, even as international oil prices rose amid reports of attacks on Saudi infrastructure and vessels in the Gulf.
Brent crude futures rose 55 cents, or 0.50 percent, to $110.10 per barrel on Tuesday, after reaching $110.70 in the previous session, its highest level since May 20. The United States (US) West Texas Intermediate (WTI) crude contract for November delivery, which expires on Tuesday, increased 0.24 percent to $103.91 per barrel.
The latest revision brings petrol and diesel prices down from their respective peaks of Rs458.41 and Rs520.35 per litre, recorded on April 3. Petrol had started rising from Rs266 per litre in the first week of March, while diesel had climbed from Rs281 per litre after the US-Iran war broke out on February 28.
The government continues to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel, despite the latest price reductions.
According to the Petroleum Division’s notification, the revised rates take effect on October 20.
The government has also reintroduced austerity measures in response to rising fuel prices amid the ongoing conflict in the Middle East. Under these 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 users of motorcycles, auto-rickshaws and vehicles with engine capacities of up to 800cc to ease the burden of rising international oil prices.
Petrol remains a key fuel for private transport, small vehicles, rickshaws and motorcycles, making price changes particularly relevant to middle- and lower-middle-income households. Diesel, meanwhile, powers heavy transport, power plants and large generators, meaning its price affects transport and energy costs.
Petrol and HSD generate most of the revenue in the petroleum sector, with monthly sales ranging from 700,000 to 800,000 tonnes. In comparison, monthly kerosene demand stands at around 10,000 tonnes.
