Government cuts petrol price by Rs1.65, diesel by Rs0.88 per litre

The federal government has announced a reduction in the prices of petrol and high-speed diesel (HSD), providing limited relief to consumers amid continued fluctuations in global oil markets.

Under the revised rates, the price of petrol has been reduced by Rs1.65 per litre, bringing it down to Rs389.14. The price of HSD has been cut by Rs0.88 per litre and will now stand at Rs424.04 per litre.

The new prices will take effect from September 19 and remain applicable through September 21, according to the Petroleum Division’s notification.

The Oil and Gas Regulatory Authority (OGRA) linked the latest revision to movements in international petroleum prices, along with changes in premiums and other relevant factors.

Despite the reduction, petroleum products remain significantly more expensive than their levels earlier in the year. HSD had reached Rs520.35 per litre on April 3 after rising from around Rs281 per litre following the outbreak of the US-Iran conflict on February 28.

Petrol also touched a peak of Rs458.41 per litre on April 3. Its price had begun climbing from around Rs266 per litre in the first week of March.

The government has also introduced several austerity measures in response to higher fuel costs. These include directing markets to close by 9pm and reducing fuel allocations for official vehicles by 50 per cent for a period of three months.

Prime Minister Shehbaz Sharif had earlier announced a fuel relief scheme for motorcycle, rickshaw and small-car users. Under the scheme, owners of two- and three-wheelers are eligible for relief of Rs100 per litre on a monthly quota of 20 litres. Owners of vehicles with engines up to 800cc are eligible for the same relief on a monthly quota of 30 litres.

The government has also shifted towards more frequent fuel price reviews because of volatility in international markets. Petroleum Minister Ali Pervaiz Malik announced in July that fuel prices would be determined on a daily basis in response to fluctuations in global oil rates.

Petrol and diesel prices have a direct impact on household budgets and transportation costs. Petrol is widely used by private vehicles, motorcycles and rickshaws, while HSD is extensively consumed by heavy transport, power plants and large generators.