Petrol down Rs3.39, diesel Rs4.07

The federal government has announced another reduction in petroleum prices, lowering the rates of both petrol and

The federal government has announced another reduction in petroleum prices, lowering the rates of both petrol and high-speed diesel (HSD) effective August 5 under the recently introduced daily fuel pricing mechanism.

According to a notification issued by the Ministry of Petroleum, the price of petrol has been reduced by Rs3.39 per litre, bringing the new rate to Rs328.56 per litre. The price of high-speed diesel has also been cut by Rs4.07 per litre, with the revised rate set at Rs385.86 per litre.

The latest reduction follows a similar decrease announced a day earlier, reflecting continued adjustments under the government’s daily fuel price review system.

The new pricing mechanism, introduced on July 17, determines fuel prices using a seven-day average of international oil market rates. The policy aims to align domestic petroleum prices more closely with global market trends and allow quicker adjustments in response to fluctuations in crude oil prices.

Pakistan remains heavily dependent on imported crude oil and refined petroleum products, making local fuel prices highly sensitive to movements in international energy markets. Changes in global oil prices directly affect the country’s import bill, foreign exchange reserves and inflation.

Energy analysts say international petroleum prices continue to be influenced by geopolitical developments, including tensions in the Middle East, decisions by OPEC+ countries, sanctions on major oil producers and disruptions in key global shipping routes. These factors can significantly impact crude oil prices and transportation costs, ultimately affecting domestic fuel prices in Pakistan.