ISLAMABAD: Pakistan’s government on Thursday announced a significant reduction of Rs9.41 per litre in petrol prices and Rs5.56 per litre in high-speed diesel (HSD) rates, marking the fourth consecutive cut in petroleum prices.
Following the revision, petrol will be available at Rs352.59 per litre and high-speed diesel (HSD) at Rs382.25 per litre.
According to a notification issued by the Oil and Gas Regulatory Authority (OGRA) the revised fuel prices will be applicable from November 5.
The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.
Pakistan keeps petrol Rs 15 per litre below international rates
Addressing a press conference on Monday, Petroleum Minister Ali Pervaiz Malik said that Pakistan has managed to keep petrol prices around Rs15 per litre below international market rates despite rising global fuel import costs triggered by the US-Iran conflict, crediting local refineries for absorbing part of the financial burden under a revised pricing mechanism.
The minister said regional tensions had driven up the cost of importing petroleum products, with petrol premiums rising sharply alongside freight, insurance and other logistical expenses.
Speaking about the government’s revised fuel pricing mechanism, Malik said the premium on petrol had increased from approximately $5 per barrel before the conflict to around $20 per barrel afterwards.
He added that subsequent Pakistan State Oil (PSO) tenders showed premiums climbing further to between $25 and $30 per barrel, and even higher as regional conditions deteriorated.
The petroleum minister said the government had engaged local refineries to minimise the impact of rising international prices on consumers while ensuring that imported fuel remained commercially viable and domestic supplies were not disrupted.
According to Malik, approximately 70% of Pakistan’s petrol requirements are met through imports, while local refineries supply the remaining 30%.
Pakistan’s daily fuel price mechanism
On July 17, 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 of Pakistan 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 Pakistan 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 fall for fourth straight day, Brent drops to $94
International oil prices kept on falling for a fourth consecutive session on Thursday, with Brent trading near $94 a barrel and WTI below $88.
The changing political expectations in the United States raised hopes of reduced military tensions with Iran.
ALSO READ: Oil Prices Fall for Fourth Straight Day, Brent Drops to $94
Brent was quoted at $94.02 a barrel and WTI at $87.11. Compared with Wednesday’s settlements of $94.62 and $88.12, respectively, the benchmarks were lower by 60 cents and $1.01. The latest available Dubai crude quotation was $101.15 a barrel.
The latest losses followed a particularly sharp fall on Wednesday, when Brent plunged $8.98, or 8.7 per cent, to settle at $94.62 a barrel. WTI dropped $7.97, or 8.3 per cent, to $88.12.
