ISLAMABAD: Pakistan on Friday reduced the price of petrol by Rs1.65 per litre and high-speed diesel (HSD) by Rs0.88 per litre amid fluctuations in international oil prices.
Under the revised rates, petrol will now be sold at Rs389.14 per litre, while diesel will cost Rs424.04 per litre.
According to the Petroleum Division’s press release, the new prices will be applicable on September 19 (Saturday).
The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March. The price of HSD has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28.
Pakistan’s daily fuel price mechanism
On July 17, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.
Prior to this, the government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East.
The federal government in April also announced targeted relief measures to provide subsidised fuel.
The petroleum minister stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (OGRA) the responsibility of deciding fuel prices on a daily basis based on international market trends.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.
Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.
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Pakistan approves Rs75bn fuel relief package
Pakistan’s government on Monday approved a Rs75 billion targeted fuel relief package for lower-income consumers amid rising petroleum prices, providing subsidies to eligible owners of two- and three-wheelers and cars up to 800cc.
The Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Muhammad Aurangzeb, approved the package to provide targeted relief to lower-income consumers.
