Petrol price cut by Rs2.71 per litre, diesel becomes costlier

The federal government has reduced the price of petrol by Rs2.71 per litre while increasing the rate of high-speed diesel (HSD) by 31 paisa, according to an

The federal government has reduced the price of petrol by Rs2.71 per litre while increasing the rate of high-speed diesel (HSD) by 31 paisa, according to an official notification issued on Wednesday.

Under the revised rates, petrol will be available at Rs379.31 per litre, while high-speed diesel will cost Rs390.11 per litre. The new prices will take effect from Thursday, October 22.

The government continues to collect taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel, adding to the cost paid by consumers at fuel stations.

The latest adjustment comes amid continued volatility in international oil markets following the US-Iran conflict and wider tensions in the Middle East. Changes in global petroleum prices have prompted frequent revisions to domestic fuel rates.

Diesel prices have fallen considerably from their peak of Rs520.35 per litre, recorded on April 3. The price had risen from around Rs281 per litre after the conflict began on February 28.

Petrol also reached a high of Rs458.41 per litre on April 3, after climbing from approximately Rs266 in the first week of March.

The government has introduced austerity measures to reduce fuel consumption and manage the impact of higher energy costs. Under the measures, markets are required to close by 9pm, while fuel allocations for official vehicles have been reduced by 50 per cent for three months.

Prime Minister Shehbaz Sharif had also announced a relief scheme on September 13 for motorcycle owners, rickshaw operators and users of vehicles with engine capacities of up to 800cc to ease the burden of rising global oil prices.

In July, Petroleum Minister Ali Pervaiz Malik announced a shift to daily fuel price adjustments in response to fluctuations in international markets following renewed hostilities between Iran and the United States.

The Oil and Gas Regulatory Authority (OGRA) was assigned responsibility for determining prices based on international market trends, replacing the weekly revision mechanism that had been followed since early March.

Petrol price changes directly affect household transport expenses, particularly for middle- and lower-income groups that rely on motorcycles, rickshaws and small cars. Diesel rates also influence transport and freight costs, with potential effects on the prices of essential goods.