ISLAMABAD: Pakistan’s government on Tuesday slashed the prices of petrol by Rs1.49 per litre and diesel by Rs2.73 per litre, amid fluctuations in global oil prices.
After the revision, petrol will now be sold at Rs387.54, while high-speed diesel (HSD) will cost Rs402.24 per litre.
According to a press release issued by the Petroleum Division, the revised fuel prices will be applicable from September 30.
In the previous review on Monday, Pakistan’s government reduced the prices of petrol by Rs2.27 per litre and diesel by Rs3.56 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.
Pakistan 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 rise for second day
Oil prices rose for a second straight session on Tuesday as persistent concerns about Middle East supply disruptions outweighed signs of recovery in the region’s crude exports.
ALSO READ: Oil Prices Rise For Second Day As Hormuz Disruption Stokes Supply Fears
Brent crude futures rose 63 cents, or 0.6 per cent, to $105.91 a barrel, while US West Texas Intermediate (WTI) crude gained 72 cents, or 0.8 per cent, to $93.32 a barrel by 0002 GMT.
The market remains focused on the US-Iran conflict and the future of shipping through the Strait of Hormuz, a vital route for global oil and gas supplies.
Continued uncertainty over the waterway is keeping a geopolitical risk premium in crude prices even as some Gulf exports recover.
