ISLAMABAD: Pakistan’s government on Monday reduced the price of petrol by Rs5.16 per litre and diesel by Rs7.69, providing significant relief to consumers.
Following the revision, petrol will be priced at Rs381.14 per litre, while high-speed diesel (HSD) will cost Rs389.27 per litre.
According to a press release issued by the Petroleum Division, the revised fuel prices will be applicable from October 20.
Pakistan’s government on Friday reduced the price of petrol by Rs3.63 per litre while keeping the price of high-speed diesel unchanged.
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 fall from five-month high
Oil prices fell on Monday after reaching a five-month high last week, as investors booked profits and assessed whether a US move to ease restrictions on Russian oil could increase global supplies despite severe disruptions to shipments from the Gulf.
Traders were still assessing whether a US decision to waive sanctions on Russia could increase fuel supplies.
ALSO READ: Oil prices fall from five-month high
Brent crude futures fell about 1.5 per cent to $108.27 a barrel in a Monday market update published by Money Control, while US West Texas Intermediate (WTI) crude declined about 0.6 per cent to $100.83.
Business Recorder separately reported Brent at $108.43, down 1.3 per cent, in its Monday update. The figures reflect different reporting times during a volatile trading session.
Earlier in the session, Reuters reported Brent at $107.57 a barrel, down $2.29, or 2.08 per cent, by 0619 GMT. WTI stood at $99.46, down $1.95, or 1.92 per cent. Both benchmarks had closed Friday at their highest levels in months.
