ISLAMABAD: Pakistan’s government on Wednesday reduced the price of petrol by Rs2.71 per litre while increasing the price of diesel by Rs0.31 per litre.
Following the revision, petrol will be priced at Rs379.31per litre, while high-speed diesel (HSD) will cost Rs390.11 per litre.
According to a press release issued by the Petroleum Division, the revised fuel prices will be applicable from October 22.
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.
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.
Oil prices climb above $110
Oil prices rose on Wednesday as renewed threats to shipping and energy infrastructure in the Middle East heightened fears of supply disruptions, offsetting hopes that diplomatic efforts could ease the conflict.
Consequently, Brent crude hovers near $ 1 barrel in early trading.
ALSO READ: Oil Prices Climb Above $110 as Middle East Shipping Risks Mount
Brent crude futures rose 85 cents, or 0.78 per cent, to $109.64 a barrel at 0022 GMT, while US West Texas Intermediate (WTI) crude gained 76 cents, or 0.78 per cent, to $98.58.
Later market data showed Brent trading above $110, with WTI approaching $99. Prices remain volatile following Tuesday’s retreat from a five-month high.
