ISLAMABAD: Pakistan’s government on Friday increased the price of petrol by Rs2.10 per litre and diesel by Rs0.30 per litre, amid fluctuations in global oil prices.
Following the revision, petrol will be priced at Rs392.76 per litre, while high-speed diesel (HSD) will cost Rs399.64 per litre.
According to a press release issued by the Petroleum Division, the revised fuel prices will be applicable from October 3.
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 drop as Europe agrees to release diesel reserves
Oil prices fell $2 after European leaders agreed on Friday to a request by US President Donald Trump to release diesel from their reserves to lower prices and reduce the need to import fuel from America.
ALSO READ: G7 Agrees to Release 100 Million Barrels of Oil Reserves to Curb Diesel Prices
Brent was down $1.80, or 1.76%, at $100.50 a barrel at 10:49 a.m. CDT (1649 GMT). West Texas Intermediate dropped $2.02, or 2.18%, to $90.85 a barrel.
For the week, Brent was down about 2.84% so far, with WTI around 1.54% lower.
Oil prices came under increased downward pressure as signs emerged that Gulf crude exports were recovering after months of disruption linked to the US-Iran conflict.
