Petrol price jumps by Rs3.26 per litre

The federal government has raised the price of petrol by Rs3.26 per litre for October 2, while reducing the price of high-speed diesel (HSD) by Rs1.01 per litre under the country’s daily petroleum pricing mechanism.

Following the latest revision, petrol will now cost Rs390.66 per litre, compared with the previous rate, while the price of HSD has been set at Rs399.34 per litre.

The adjustment comes just a day after the government reduced petrol and diesel prices by 14 paisas and Rs1.89 per litre, respectively, for October 1.

Pakistan introduced a daily fuel pricing system in July to allow petroleum prices to respond more quickly to fluctuations in international oil markets. The mechanism replaced the previous weekly review system amid heightened volatility in global crude prices.

International oil markets have remained under pressure because of geopolitical tensions, supply concerns and disruptions to major shipping routes. Pakistan, which relies heavily on imported petroleum products, is particularly exposed to changes in global crude prices.

Oil prices rose by more than $3 a barrel on Thursday after China suspended exports of oil products to markets outside Hong Kong and Macau. The move raised concerns about tighter fuel supplies at a time when global markets are already facing disruptions.

Brent crude futures for December were trading at around $101.20 a barrel, up 3.2% from the previous close. The previous front-month contract had settled at $103.50 a barrel after gaining around 14% during September.

The latest international price movement could continue to influence domestic fuel prices under Pakistan’s daily pricing mechanism.

The government has also announced a fuel relief scheme aimed at reducing the impact of higher petrol prices on lower-income consumers. Under the proposal, eligible motorcycles, three-wheelers and cars with engines up to 800cc would receive a Rs100-per-litre subsidy.

Around 11.8 million people are expected to benefit from the scheme, with eligible two- and three-wheeler users receiving relief on up to 20 litres of petrol per month, while qualifying small-car owners would receive relief on up to 30 litres.