ISLAMABAD: The Pakistan government on Friday slashed the prices of petrol by Rs0.58 and high-speed diesel (HSD) by Rs0.17 per litre under a new price mechanism.
Following the revision, petrol will be available at Rs342.02 per litre, while HSD will be sold at Rs371.44 per litre.
According to a notification issued by the Petroleum Division, the revised prices will take effect from Saturday, August 29.
Pakistan daily fuel price review mechanism
The government of Pakistan shifted to a daily fuel price review mechanism amid heightened volatility in global oil markets triggered by renewed tensions in the Middle East. The move is aimed at ensuring that changes in international oil prices are reflected more quickly in domestic fuel rates.
The government had earlier replaced the fortnightly pricing system with weekly reviews following the outbreak of the Middle East conflict.
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 slip
Oil prices edged lower on Friday and were on track for a weekly decline as traders assessed signals from the US Federal Reserve on inflation and reports of possible progress toward reopening the Strait of Hormuz.
Brent crude futures fell 38 cents, or 0.42%, to $89.32 a barrel by 10:54 a.m. CDT (1654 GMT), while US West Texas Intermediate (WTI) crude dropped 36 cents, or 0.43%, to $83.17.
Both benchmarks were heading for weekly losses, with Brent down about 5.38% and WTI off 4.47%.
Oil prices came under additional pressure after comments from new Federal Reserve Chair Kevin Warsh suggested the possibility of an interest-rate increase later this year to contain inflation, said Phil Flynn, senior analyst at Price Futures Group.
“The global products markets are looking strong on further Ukraine strikes on Russian refineries,” Flynn said, while noting growing speculation that a deal could be reached over the weekend to reopen the Strait of Hormuz.
The US-Israeli war with Iran entered its sixth month on Friday, keeping the strategic waterway at the center of market attention. Before the conflict began, roughly 20% of global oil production passed through the Strait of Hormuz.
Traders have been closely monitoring rising oil flows through the strait, including shipments via the Iran-Oman corridor and US-led efforts to clear mines.
