Pakistan reduces petrol price by Rs7.06, diesel by Rs3.71

The federal government has announced another reduction in petroleum prices cutting petrol by Rs7.06 per litre and high-speed diesel (HSD) by Rs3.71 for November 5.

The federal government has announced another reduction in petroleum prices cutting petrol by Rs7.06 per litre and high-speed diesel (HSD) by Rs3.71 for November 5.

According to a notification issued by the Petroleum Division on Wednesday petrol will now be available at Rs362 per litre while the new price of high-speed diesel has been set at Rs387.81 per litre.

The latest adjustment follows another reduction announced a day earlier when petrol prices were lowered by Rs5.45 per litre and diesel by Rs3.68 for November 4.

The government had also announced a plan on Monday under which oil refineries would absorb an estimated financial burden of Rs15 billion per month. The arrangement was intended to keep petrol prices Rs15 per litre below international market rates amid volatility linked to the US-Israeli conflict involving Iran.

Pakistan introduced a daily petroleum pricing system on July 17 replacing the previous weekly review mechanism. Under the revised arrangement fuel prices are adjusted and notified each day in response to changing international oil market conditions and supply concerns.

Meanwhile the government has also introduced targeted fuel relief for lower-income consumers. Prime Minister Shehbaz Sharif announced a subsidy of Rs100 per litre for motorcycles three-wheelers and cars with engine capacities of up to 800cc.

The scheme was expected to benefit approximately 11.8 million people. Motorcycle and rickshaw users were allocated relief on up to 20 litres of petrol monthly providing a maximum benefit of Rs2,000. Owners of eligible small cars could receive a subsidy on 30 litres per month amounting to a maximum of Rs3,000.

The government also reintroduced austerity and fuel conservation measures in September. These included restrictions on business hours with markets and shopping centres required to close by 9pm and marriage halls by 10pm. Restaurants and food outlets were permitted to operate until 11pm while takeaway and home delivery services remained exempt.