ISLAMABAD: Pakistan’s government on Monday reduced the prices of petrol by Rs2.27 per litre and diesel by Rs3.56 per litre, amid fluctuations in global oil prices.
After the revision, petrol will now be sold at Rs389.03, while high-speed diesel (HSD) will cost Rs404.97 per litre.
According to a press release issued by the Petroleum Division, the revised fuel prices will be applicable from September 29.
In the previous review on Friday, the Pakistan government increased the price of petrol by Rs2.02 per litre and reduced diesel by Rs3.59 per litre.
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.
Oil prices jump after Trump rejects Iranian peace proposal
Oil prices rose more than 1 per cent on Monday after US President Donald Trump rejected an Iranian proposal aimed at resolving the conflict and reopening the Strait of Hormuz, keeping uncertainty over Middle East energy supplies high.
ALSO READ: Oil Prices Jump After Trump Rejects Iranian Peace Proposal
Brent crude futures rose $1.32, or 1.27 per cent, to $105.64 a barrel by 0036 GMT, while US West Texas Intermediate (WTI) crude gained 70 cents, or 0.76 per cent, to $93.11.
Iran presented its peace proposal at the United Nations General Assembly in New York last week after transmitting it to Washington through mediators.
Trump said on Saturday that he had rejected the proposal, but later told Axios that US negotiators were expected to hold further talks this week.
The Strait of Hormuz stays in traders’ focus for the oil market because it is a critical route for crude and refined fuel shipments from the Arabian Gulf.
