Petrol price rises by Rs1.20, diesel gets cheaper

The federal government has increased the price of petrol by Rs1.20 per litre while reducing the rate of high-speed diesel (HSD) by 17 paisas for October 15.

Under the latest revision, petrol will cost Rs393.86 per litre, while diesel will be available at Rs396.65 per litre. The new rates come into effect on Thursday under the government’s daily petroleum pricing mechanism.

The latest adjustment follows a reduction in fuel prices a day earlier. On October 14, the government had lowered the price of petrol by Rs2.71 per litre and diesel by three paisas.

The government introduced a daily pricing system in July to adjust domestic fuel rates in line with fluctuations in international oil markets. Previously, petroleum prices were reviewed on a weekly basis. The change came amid continued geopolitical tensions and uncertainty over global energy supplies.

International oil prices remain under pressure from developments in the Middle East, including attacks on energy infrastructure, tensions involving Iran, and security concerns surrounding shipping routes. Disruptions in the Strait of Hormuz and the Red Sea could further affect oil supplies and transportation costs.

Brent crude futures rose by 13 cents to $105.56 per barrel, while US West Texas Intermediate crude gained $1.25, or 1.33 per cent, to reach $95.39 per barrel during Wednesday’s trading.

The increase in international prices reflects concerns over possible disruptions to regional oil exports. Analysts have warned that attacks on vessels and escalating regional hostilities could support prices if supply flows are affected.

Pakistan remains heavily dependent on imported petroleum products. As a result, movements in international crude prices and shipping costs can quickly influence domestic fuel rates, adding pressure on household budgets and transportation expenses.

To provide relief to lower-income consumers, Prime Minister Shehbaz Sharif announced a proposed subsidy of Rs100 per litre for motorcycles, three-wheeler rickshaws and cars with engine capacities of up to 800cc in September.

Under the announced scheme, eligible motorcycle and rickshaw users were to receive relief on up to 20 litres of fuel per month, while owners of qualifying small cars were to receive relief on up to 30 litres. The proposed maximum monthly benefit was Rs2,000 for motorcycle and rickshaw users and Rs3,000 for eligible car owners.

The government has also introduced fuel conservation measures, including restrictions on business hours and the operating times of commercial venues, in response to rising energy costs. Further movements in global oil prices are likely to remain a key factor in determining Pakistan’s domestic fuel rates.